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Thursday, October 26, 2006

Digg.com Goes Drilling for US$150 Million Acquisition Offer

Posted by @ 8:47 pm
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Digg.com is the latest web 2.0 company chasing a lucrative acquisition deal. In the wake of Google’s phenomenal purchase of YouTube, Digg is hoping to find a buyer willing to fork out over US$150 million for their user generated news site.

According to the press, they have had discussions with several potential buyers, with News Corp.’s Fox Interactive being the most notable contender. News Corp is the owner of social networking heavyweight MySpace, so Digg could be seen as a logical add-on to their suite of social websites.

The challenge Digg.com is facing in its attempt to secure a satisfactory acquisition offer, is their controversial visitor volumes. Digg.com claims they have 20 million unique visitors per month, which is substantially higher than the reports by comScore which show only 1.3 million unique visitors.

While there are some questions regarding the validity of comScore’s report, these conflicting reports will cause concerns for potential buyers as they try to get a true sense of Digg.com’s value.

If Digg is unable to secure a deal in the next fortnight or so, they will be forced to close a US$5 million second round financing later this year. Who knows – maybe Google or Yahoo! have some spare change in the bank to expand their social services?



Rene LeMerle Rene is the marketing manager of ineedhits.com - a global search engine marketing company. He also leads the marketing for Gooruze.com - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile






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