Did Digg Just Dump FM?

Digg has announced a deal with Microsoft. In a big win, Microsoft will manage their ad inventory as exclusive provider of banner, display and paid search advertising, replacing Federated Media and Google. FM will continue to provide other types of advertising on Digg, including integrated campaigns and sponsorships.

What are we seeing here? Is FM starting to feel the pressure from other larger players who are starting to get their acts together?

How long before Networks like CNNMoney, CNBC, Wall Street Journal, Business Week, and others wake up and launch their own Ad Networks and snatch away FM’s top bloggers? I know that Time, Inc. is contemplating such a move. NBC has already launched a women-focused Ad Network with iVillage, to compete with Glam Media. CNBC is likely their next one.

When that happens, would bloggers like Om Malik and Michael Arrington also leave FM?

[Tomorrow: What this means for Google.]