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Digg.com In Acquisition Talks

If Michael Arrington says it's so, it really might be. The man who broke the Google-YouTube news is now saying San Francisco startup Digg.com is holding acquisition discussions with a number of companies, including News Corp.

Arrington is quick to point out that these are rumors--and rumor has it that Kevin Rose and company want at least $150 million for the community article tagging site, in which users tag or "digg" articles they deem awesome enough to be read by everyone worldwide. The idea is to let the people tell you which news is best, in a number of different categories.

Arrington says the acquisition talks are unlikely to come to anything, as Digg's founders would rather retain control. Rumors of the upcoming Series B financing--possibly $5 million from Greylock Partners--led News Corp. and others to initiate discussions with Digg.

Talks have stalled, Arrington says, partly because of a traffic measurement dispute with ComScore. And it's a big one: Digg says it has 20 million uniques, while ComScore reports just 1.3 million in its September report, along with flat growth since August. As Arrington points out: "These numbers are for U.S. households only. Comscore is almost certainly significantly under-reporting Digg traffic."

Read the whole story at TechCrunch »

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