Techcrunch breaks another “scoop” that Digg may be in acquisition talks but it could end up being a 2nd round of funding. The number being thrown around is a minimum of $150 million. Whew. That’s a lot of cash when you consider their traffic and the rumored revenue of about $3 million per year.
Good for them if they can pull it off. It’s amazing that companies can talk about such valuations these days without unique technologies or true competitive moats. True, Digg has a powerful community and I’m definitely not one to underestimate the value in that, but there are many examples on the web of communities disappearing quickly for the next greatest thing.