Is Digg Really Worth Over $200 Million?
Once again, rumors are circulating that Digg.com is for sale and this time is looks like Microsoft and Google are the interested parties. What originally started out as a post on TechCrunch, has turned into a widespread rumor and everyone is waiting to see what happens. As posted on TechCrunch, Digg CEO Jay Adelson is calling this post â€œcompletely inaccurate.â€. Inaccurate or not, Digg users themselves are trying to do whatever is possible to stop an acquisition. What would the acquisition of Digg mean to Microsoft or Google… and would it really matter that much at all?
As bloggers and web site owners, we know and understand the power of being dugg. For the lucky few of us to have an article or page make it to their main page, you probably received thousands upon thousands of clicks. Whenever I hear about someone getting dugg, there is usually a follow up story about how crappy the traffic was and it just cost them a ton in bandwidth or brought their site down with it. Digg.com is making money, but Digg.com traffic also sucks. After searching Google for “Digg Traffic Sucks“, you will find thousands of sites complaining about how being dugg just brought them an onslaught of quick traffic, that really had no value.
Microsoft already has a massive three year advertising deal with Digg.com. With that deal in place, Microsoft won’t be as active to place a higher bid on the company. TechCrunch reports “Digg is prepared to take less than the $300 million Allen & Co. were floating late last year. Google, our source says, will likely bid $200-$225 million, which Digg would likely accept.”. Either way, should Digg be purchased, Microsoft would have the option to terminate their advertising deal.
The drama of Microsoft vs. Google continues. Will Microsoft successfully scoop up Yahoo and Digg? Is Digg really worth $200+ million?
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