Google to buy Digg for USD200m

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.

Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast; https://www.game-consultant.com

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