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Digg to sell for USD 300m?

Another Web 2.0 darling is said to be planning to put a "Sale" sign up soon.

According to Valleywag (opens in new tab) and Techcrunch (opens in new tab), Digg is very close to join the rooster of newly acquired startups for a price between USD 300m and USD 400m.

There have been several rumours about Digg.com, which is a Top 100 Alexa website, selling but none have generated as much buzz as this one.

Sources say that a major media player is behind the deal with three potential suitors named : CBS, The New York Times Co. and the Washington Post Co.

As recently as last week, Digg's CEO (opens in new tab), Jay Adelson revealed his personal thoughts on being acquired : "I'm not afraid of being acquired, I just don't pursue it because we like to solve problems, we don't like to create them – and often an acquisition can do that."

Digg.com has nearly 22m unique visitors a month with 210m page views, 2m registered users, 1 bn page impressions and a growth rate of 10% and has recently signed a USD 100m multi year contract with Microsoft over advertising.

Web statistics specialist Compete (opens in new tab) puts the price of each Digg user at roughly USD 16.30 which is 38 times less than that of a Facebook user.

Conde Nast which runs Wired and other websites, acquired Boston-based Reddit, which is one of the main Digg competitors for an undisclosed sum and Digg is the only remaining original news aggregator.

Digg.com itself has been rumoured to purchase Memeame which is a Digg-clone operating in the Spanish market although in a recent Guardian (opens in new tab)interview, Jay Adelson said that Digg would just let others copy rather than sue them or work against them, arguing that it would help Digg grow.

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.