Yahoo! digging Digg?

Rumors abound today that Yahoo!’s talking to Digg for an acquisition.  I would be surprised if they do, so soon after del.icio.us, especially for the $30-35m price tag being talked about.  According to PaidContent.org, digg has just 140K users.  The price implies a >$200/member valuation.  Remember Murdoch paid $580m for MySpace’s 22m members.  And, MySpace gets much more attention than Digg.  I will be extremely surprised if the deal turns out to be true.

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