By acquiring Digg, News Corp. would add another Internet hot-spot to its portfolio, which already includes MySpace. If the acquisition doesn't occur, Digg is poised to persue a secound round of financing, according to the report.
The sticking point, Techcrunch says, is how much Digg is actually worth: The startup is asking for no less than $150 million, which doesn't equal the company's ad revenue, some speculate. (Doesn't hurt to ask, right? YouTube's owners got $1.6 billion from Google for their video-sharing site.)
Digg's value is undoubtedly tied to the number of visitors it gets, and that was one of the looming questions in the negotiations. Digg pegs unique monthly visitors at 20 million and growing. Comscore re-ports that site enjoys only 1.3 million monthly unique visitors. Quantcast, currently in beta, cal-culates the number of U.S. visitors at around 500,000 (if I am reading their chart correctly).