Google does not Digg it, walks away from the deal

Written on July 26, 2008 – 3:53 pm
Joop Dorresteijn, Contributing editor

A dispiriting update about Google wanting to acquire Digg, the deal is off! The guys at Digg were about to close the deal and walk away with 200 million dollars. But for some reason, Google decided to walk away from the deal yesterday, leaving Digg to be the ugly bride nobody wants to have.

The acquisition had passed the term sheet stage and entered final negociations this week. During these non-binding negotiations, Google had closer research into Digg’s technology and financial statement, the teams from both parties might not cooperate as expected before.

Could Google have a strategy by walking away? Or is there something fishy to Digg’s financial status or technology? Perhaps it’s the fact that Google News already makes $100 million revenue per year, and does not need Digg. As Valleywag reports, Digg would be inconsequential for Google’s traffic. Either way, Interest of other parties might be questionable after the turndown by Google. I’d say: Just sell the site to the first buyer Jay, while you still can!

I hope you like that post!

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acquire, digg, google, Jay Adelson

About the author: Joop is an entrepreneur and blogger located in Seoul, South Korea. Read his blog here.

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4 comments to “Google does not Digg it, walks away from the deal”

By GoodAdvice.TV on Jul 26, 2008

Thanks for the article.

I really enjoyed reading it. I particularly liked your phrase of ‘Top Tea’ :-)

Keep up the good work.

[Reply]
By PJ Brunet on Jul 26, 2008

Wasn’t Digg coded for $400? Maybe they looked at the sourcecode and got scared ;-)

[Reply]
By David Hobson on Jul 26, 2008

I dont see why Google would want to buy Digg its not going to bring them any benefits.

[Reply]
By Sarah on Jul 28, 2008

How can you not want digg? If I had that kind of money, I’d buy digg.. (And theNextWeb ;-) )

[Reply]

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