Google completes Digg purchase negotiations for $ 200 million

Google has been in intensive negotiations with the owners of Digg for the purchase of this UGC news site for a month and a half. Informal information about the negotiations leaks through numerous sources both within the company and abroad. According to reports, the parties have already signed an agreement of intent and are close to the final agreement, under which Digg will be included in Google News. The cost of the transaction will be about $ 200 million. This is a good price, considering that the total amount of venture capital investments attracted to the startup is only $ 11.3 million.

For the first time about the negotiations of Google and Digg became known in March of this year . Despite the categorical refutation of this fact by the leadership of Digg, we now see that there was some truth in those rumors.

At the moment, the deal is close to completion, although the process may be delayed for a few more weeks. Experts even admit that the transaction may not take place at all, although agreement on the main points has already been reached. There is a possibility that Microsoft may interfere in the negotiations.

Digg receives most of its revenue from Microsoft, with which it has a three-year contract. After the deal with Google, this contract will be terminated.
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via TechCrunch