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Is Digg on the Block?

Apparently, sources suggest Digg’s in play….again.

This time around the price-tag is a cool $300-million, which on the surface seems pretty low given what Facebook pulled in. Perhaps it suggests Digg has been having some trouble converting traffic into dollars. After all, it still seems to be relying fairly heavily on AdSense.

Unlike my friend, Mathew Ingram, I do not believe Google would be a suitor. While Google has made some large acquisition – dMarc and YouTube – I just can’t see it buying Digg. It seems like a strange move but so does Google move into Wikipedia territory with Knol.

WatchMojo suggests the leading contenders for Digg are Microsoft, Yahoo and Google. However, he discounts Microsoft because it already has a deal with Digg and a relationship with Newsvine through MSNBC.com. For Yahoo, WatchMojo suggests Digg’s Digg This competes with del.icio.us. As a result, he thinks Google could be a logical buyer.

The funny thing about Digg is it seems like the last girl without a dancer partner at a party that’s been going strong for a long time. Whether Kevin Rose has been reluctant to sell or whether Digg and its investors haven’t seen an offer they like yet, you would have thought Digg would have been dug by now.

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