Rumors Swirling That Yahoo Will Buy Digg

January 26th, 2006

Rumors are swirling that Yahoo is going to acquire Digg. I’ve already seen two posts saying they’ve heard it’s in the 30-50 million range.

We’ll probably see in the next few weeks whether or not it’s true. If so, it would fit with Yahoo’s recent strategy of acquiring the leaders in various Web 2.0 spaces such as Flickr, del.icio.us, and Upcoming.org.

The question becomes, what is Yahoo’s strategy here? There hasn’t been much noticeable change in the services they’ve acquired. Yahoo has publicly said they’ve been interested in the people working for these companies and having them help “socialize” Yahoo. I’m not sure there’s anything noticeable there yet either, unless it’s all still in the works. Are some bright minds worth the prices being paid? I’m not sure Digg really has a ton of great technology, and are userbases that valuable? Couldn’t Yahoo build a similar service? It wouldn’t be as authentic as Digg, but it just makes you wonder if they can get 30-50 million of value out of it. However, this is all specualtion until it happens.

• Yahoo! Buzz is umm….Buzzing
• Will Digg Be Acquired?
• Digg vs. Slashdot
• Digg Raises 8.5 Million, And Three Interesting Threads
• Where Are Web Communities Headed?

Entry Filed under: Acquisitions, Web 2.0, Yahoo