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Digg In Acquisition Talks

written by John Chow on October 24, 2006

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Well, well, well. The day after Google purchased YouTube for $1.65 billion I made a post asking is Digg next? The story made it to the front page of Digg but then got buried because some diggers thought I was just making things up. Looks like I’ll be getting the last laugh.

Tech Crunch is reporting that Digg is in acquisition discussions with a number of companies, including News Corp. The asking price: $150 million. In my original post, I stated.

While Digg will never publicly state that they are for sale, I got even money that says they are open to offers. Back in January there was a rumor that Yahoo offer $40 million for Digg. According to this Business article, Digg is worth at least $200 million, even though they are only breaking even right now. Is a company with just $3 million a year income worth $200 million? I doubt it, but we are in the middle of Dot Com Bubble 2.0, where pricing a website makes absolutely no sense. With these kinds of crazy valuations, the question isn’t whether Digg is for sale, the question is when Digg will be sold.

Looks like the question is about to be answered real soon.

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