Based on “the word” on the net 4 heavy hitters are currently on the line to aquire Digg – two media/news companies, and tow big internet companies – Google and Mircrosoft.

Microsoft already has an advertising deal with Digg since last year, so it will be hard to value Digg based on the revenue that they themselves supply. Only by terminating that advertising deal a true value can be set, which also means that Google isn’t valuating Digg based on current revenue either.

It is interesting to see how the bidding war between Mircosoft and Google over Digg develops, specially considering if anybody else raises their hand at the last minute.

Digg was founded in late 2005 and has raised $11.3 million in funding. The bids will likely be in the range of $200-$250 million based on the numbers mentioned on the net.