It seems that every couple months there are new buyout rumors regarding the fast-growing social media site, Digg. And, yes, the rumors are buzzing again. The culprit this time is the Valleywag blog.
Of course, the suitors include old media stalwarts that – yet again – can't seem to shoot straight in the new media world. They would include such companies as the New York Times (NYSE: NYT) or the Washington Post (NYSE: WPO).
Oh, and the price tag for the deal is $300 million to $400 million. But, hey, in light of Microsoft (NASDAQ: MSFT)'s investment in Facebook, this seems cheap-o.
Ironically enough, Digg recently signed a $100 million ad deal with Mr. Softy. In other words, it seems like Microsoft may be to blame for the craziness in the social media world, huh? And, as a result, it may be making it very expensive for old media companies to buy into the space.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
11-08-2007 @ 10:20PM
Thomas Jowers said...
microsoft should purchase digg, after just few years it would pay for itself, becuase they would not have to keep paying 100 million for ad rites, 300 million now or 100 million over and over? plus microsoft could use this to help its mobile initiatives, digg from your phone? why not, microsoft could also roll this over into their unified communications software, letting small companies know quickly about big news stories! think about, digg fits in!