Google is holding final buyout talks with Digg, with a price set at approximately USD200m, according to TechCrunch, which cites “multiple” Google sources.
The two firms are close to striking a deal, having agreed on the major points and could be closed in a matter of weeks, claims the tech blog. The deal would see Digg incorporated into Google News.
The latest report follows numerous acquisition rumours concerning over the last nine months. Last November, Valleywag claimed the social news site was in talks to sell itself to a major media firm for between USD300m and USD400m. A month later Digg reportedly employed investment bank Allen & Company to negotiate a sale with potential buyers. Then in March, reports named Google and Microsoft as potential buyers, with rival bids expected to reach between USD200m and USD225m.
Digg, which lets users share articles and content from across the web, currently makes the majority of its money from a three-year display and contextual ad deal with Microsoft. This was signed in July 2007 with Microsoft replacing Google as Digg’s ad partner. A Google buyout would terminate the Microsoft deal, claims TechCrunch. Digg has raised approximately USD11.3m in VC funding to date.