Los Angeles - Digg, the social news aggregation site where users vote on what they think are the most important news stories, is working with investment bank Allen & Co. to set up a possible sale, with Google and Microsoft among likely suitors, TechCrunch reported, citing a source very close to the deal.

Google would likely bid $200-$225 million, while Microsoft -- which has a three-year ad deal in place with Digg -- is expected to offer less.

Meanwhile, two other media companies are also reportedly in the running.

The report states that Google and Microsoft are "on the verge" of making their offers for Digg.

Related Links:
http://snipurl.com/2182z (TechCrunch)

http://www.digg.com