I’ve now heard from two sources close to Yahoo which tell me that Yahoo is going to be buying Digg for nearly $30M. I haven’t yet heard from anyone working for Yahoo that this is 100% (they obviously had ‘no comment’) but I’d be surprised if we didn’t hear an announcement by early next week.
Since Digg launched, the service resonated with users who wanted a way to find hot and alternative news. I think what we’re now seeing is a new space emerge alongside RSS aggregation with Digg, Reddit, and TailRank being major players.
If Digg continues on this pace they’re going to need Yahoo’s help scaling the site as hardware alone should become a major expense. With Delicious, Digg, Flickr and related services, Yahoo seems willing to do whatever it takes to ‘own’ Web 2.0.
Update: Change “not seeing” to “now seeing above. Also …. sorry for the lack of reply to comments and trackbacks as I was a bit under the weather this morning… more to come.