If the word doing the round is to be believed, there may be a new acquisition to be happening sometime soon which again, a-la Yahoo, may involve the big guns. It is being said that Digg is working with influential investment bank Allen & Co. (the ones that recently got Slide a half billion dollar valuation) for a few months now, and pitching big tech and media companies on a sale. Four companies may be in heavy due diligence with Digg - two media/news companies, and two big Internet companies - Google and Microsoft. In fact, Google and Microsoft are said to be on the verge of making their bids.

Digg was founded in late 2004 and has raised $11.3 million in funding. An article published said that Digg has probably been evaluated around $200-$225 million and the offer if out forth Digg is most likely to accept. Google and Microsoft are both apparently making moves to purchase the social tech and news community, and it is believed that the end result may be a bidding war between the two companies and there are no guarantees of there being no late comers.