According to TechCrunch.com, Digg is prepared to take less than the $300 million Allen & Co. were floating late last year. TechCrunch reported that Google will likely bid around $200-$225 million bracket while Microsoft is very likely to bid lower since most of Digg’s revenue today comes from a three year advertising deal with Microsoft.

It is interesting to see whoever that manage to takeover Digg.com as it is somewhat dying now. You might ask why Yahoo! is not even interested? Because they already have Yahoo! Buzz, a newly launched Digg-clone.