Google's Digg acquisition collapses

Robert Hallock (Thrax) Reports allege that Google has decided not to pursue ownership of Digg.com

July 26, 2008 4:13 PM ET in News,

Reports broke on Tuesday that Google and Digg were entering the final stages of negotiations to acquire Digg for the sum of $200 million. The news quelled fears that arose early in March with the speculation that Microsoft and Google were in a fiscal arms race to acquire the popular internet destination. Vocal users expressed serious concerns about a Digg under Microsoft authority, while others debated the payoff for Digg founder Kevin Rose.

Today Digg owners can put their mind at ease with the knowledge that Digg is not yet destined for ownership. Reports surfacing this morning indicate that talks between Google and Digg have collapsed. While the cause of the breakdown is uncertain, various reports cite technological or cultural incompatibilities between the two well-known companies.

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2 Comments:

  1. PurplezArctic
    27 Jul '08, 6:29 am

    Digg is better off without existing under ownership. This way they can maintain their purely community driven news source without the chance of being forced/swayed into different direction that they don't wish to. Not saying that Google would do anything harmful to Digg's name. But, just like I said, they are better off.

  2. jared
    27 Jul '08, 11:58 am

    Personally I think digg has been terrible the last 2+ years when Kevin Rose decided to sell out and ditch their concentration on technology to focus on "main stream" stuff.

    Once they did that the quality of the site went down quick. As one TC commenter put it:

    Digg is no where near $200 million in value. If you look at Digg, it’s a collection of extreme left stories, people bragging about AdBlock plus, and a funnel to sites like Huffingtonpost, Rawstory, and DailyKos. The demographic that accompanies that kind of mindset is worthless, they’ll never buy anything that’s advertised

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