Commentary

Just An Online Minute... Digg: Ready For Sale?

Rumors are swirling that social media site Digg is on the cusp of being sold. The potential buyers reportedly are Google, Microsoft and two other media companies, while the purchase price is in the $200 million to $225 million range, according to Techcrunch.

This isn't the first time that acquisition rumors have swirled around the company. More than two years ago, reports surfaced that Yahoo was considering buying the site. Instead, Yahoo launched its own social media effort, Yahoo Buzz, but that site doesn't appear to have gained as much traction as Digg.

Other companies have faltered in their efforts to compete with Digg. AOL two years ago revamped Netscape as a Digg-imitator, but the project never captured the same kind of interest as Digg did. Shortly after it launched, Jason Calacanis, then general manager of Netscape, tried to lure Digg's top users to his site with a $1,000 a month offer to migrate.

advertisement

advertisement

Still, the site failed. Netscape ended social news model last year and, last month, AOL said it would end support for the browser as well.

Digg's price tag, meanwhile, has risen considerably since 2006, when sales talks filtered out to the media. When Yahoo was reportedly mulling a purchase in early 2006, the price was a rumored $30 million. But by October News Corp. was in talks to buy Digg, but balked at Digg's demand for $150 million, according to Techcrunch.

Next story loading loading..