It seems that every couple months there are new buyout rumors regarding the fast-growing social media site, Digg. And, yes, the rumors are buzzing again. The culprit this time is the Valleywag blog.

Of course, the suitors include old media stalwarts that – yet again – can't seem to shoot straight in the new media world. They would include such companies as the New York Times (NYSE: NYT) or the Washington Post (NYSE: WPO).

Oh, and the price tag for the deal is $300 million to $400 million. But, hey, in light of Microsoft (NASDAQ: MSFT)'s investment in Facebook, this seems cheap-o.

Ironically enough, Digg recently signed a $100 million ad deal with Mr. Softy. In other words, it seems like Microsoft may be to blame for the craziness in the social media world, huh? And, as a result, it may be making it very expensive for old media companies to buy into the space.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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• Walt Disney's (NYSE: DIS) struggling California Adventure theme park is about to get a $1.1B makeover over five years, reported the Wall Street Journal.

• General Motors said today that it will lay off 767 workers at its HamTramck assembly plant and cut one of the two shifts, reported the Detroit News.
• Chrysler may eliminate as many as five vehicle models this month, according to the Detroit Free Press, citing a source.
• Brazilian authorities raided Cisco Systems' (NASDAQ: CSCO) vehicles and seized merchandise, following a two-year investigation into alleged tax avoidance on products shipped from offshore havens, reported the U.K. Times.

• According to a totally unsubstantiated rumor, News Corporation's (NYSE: NWS) MySpace is going to acquire RockYou, a top Facebook application developer, for $800M, reported ValleyWag.com.

Valleywag reports that Google, Inc. (NASDAQ: GOOG) CEO Eric Schmidt is a serial adulterer. It alleges that Schmidt is "famous" for having a series of girlfriends to which he's proposed marriage despite being married. And it claims that Schmidt's girlfriends include Rita Koselka and Marci Simon.

But wait, there's more. Google's experiencing an office space crunch in New York where it hired so many people that its most recent financial report was too expense-heavy in the view of financial analysts. But despite that West Chelsea space crunch, Google was able to find a desk and phone line for none other than Marci Simon.

I guess this serial adultery falls outside of Google's "Do No Evil" philosophy. Meanwhile, if Valleywag's reports are accurate, I am questioning the judgment of Schmidt, Koselka and Simon.

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Google.