Google Walks Away from Digg

The Google/Digg acquisition negotiations were in full swing as of last Tuesday, had passed the term sheet stage and the two companies were in final negotiations in the $200 million range. But sometime this last week Google decided to walk from the deal. Digg was notified on late Thursday or Friday. The search engine company was in the due diligence stage of the deal, where they peer deep into Digg's technology and financial statements. Most term sheets are non binding, so anything that gives the buyer pause can be used as an excuse to walk away - but generally the buyer already has a very good idea what they are getting well before the term sheet stage.

Two sources close to the companies suggested that some issue that came up during technical due diligence was to blame. One source said that the issue was more personality driven, and that Google decided after spending more time with Digg's top team that there just wasn't a fit.

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23 Comments

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I'm glad Google didn't go for digg. Apparently some SMART people at Google, took a look at the crap that gets green lit on digg, plus the bickering back and forth between the looney left and the rabid right and said they didn't want any of that!
In a couple of years, digg will go the way of the doo-doo bird. It's suppose to be an ad supported sight, but if you are like a lot of people, you BLOCK that crap.

Digg is what I imagine hell would be like... lots of stupid uninformed people sharing stupid uninformed opinions and calling it "news".

I'm glad Google walked away, Digg is a lost cause. Start with a clean slate and attract the right people, not 13 year old attention whores and conspiracy theorists.

Actually, I think it might have been more of a "people-skills" thing between Digg staff and Google.

How many episodes of "the br0ken" with Kevin Rose, Alex Albrecht & Dan Huard started off with them drinking malt liquor like it's water and trying some lame prank like the old "Pizza Prank"?

Sorry - Kevin Rose and crew's businessmanship = FAIL

The only saving grace for Revisio3, Digg and the rest of that crew is Patric Norton & Roger Chang. The rest are people who regularly make totall idiots of themselves.

BRING BACK TechTV! BRING BACK LEO & PATRICK...AND KATE BOTELLO!!!!!

thats pretty dumb to say as every site is "just a website" yet, it's a organizaiton/ company

so you cant say 200M Just for a website?!?!?!

it would be too much if google was buying diggthat.com or something and starting something brand new

however, this is a company that's established.

Heh, Google isn't (or rather, wasn't) throwing down money for the company. The people, the hardware, and the software of Digg; none of it is novel. Google can reproduce a Digg equivalent in-house for pennies on the dollar. Google was buying the user base - people to advertise to, user profiles and behaviors to analyze. It was buying revenue generation.

Digg was fantastic when it first started out. It had a plain website with blue links and a white background. This was great because it scared off the casual person. I rarely visit Digg anymore. Most of the news I can get from other Tech blogs/sites anyway.

Thank god Google didn't pick up Digg. Justin- is right. The 24x7 barrage of sensationalized headlines, mostly of global warming doom, economic gloom, and mccain/bush bashing, is really wearing on the quality and spirit of how Digg started. The amount of pro-Obama propaganda posted there is beyond rational politics coverage. Lately the trend seems to be taking screenshots of digg comments...as if the comments weren't bad enough the first time around. For shame.

The amount of stupid on Digg is reaching critical mass and I for one am VERY glad Google was smart enough to see the writing on the wall and walk away.

+1

It's a pointless site, filled with infantile whining and petty feuds. It's not worth the money and it would only damage Google's reputation (which is already losing its edge and getting hard to maintain).

lol +1 for that comment...

if neowin had a user rep system.... i would totally give you some rep for that...

imo, digg is a place where the scum of the web meet and digging down articles for the sake of digging down (like the little issue that was discussed here). google has a very good news system there... why bring it down with digg...

(Lt-DavidW said @ #3.2)
I take it you've never seen YouTube's comments before?

Obnoxious, aren't they... and no way to report them. Thank goodness for YouTube Comment Snob.

(some_guy said @ #3.1)
imo, digg is a place where the scum of the web meet and digging down articles for the sake of digging down...

I was happy when they allowed digging down other commenters. Goodbye spammers and trolls..so I thought. Then I saw they were digging down people that had different views and opinions. I never went back.

I'm glad they didn't get Digg. Back when it first started it was great -- technical articles that meant something and were, at the very least, a little interesting. Now it's either left wing propaganda, people wanting their blogs trafficked, media reporting from biased websites/untrue stories (that can be verified untrue lol), articles that kids think are "great", etc.

That doesn't mean you can't find good stories every now and then, though. It just means that it's few and far between, unlike when they started a few years ago.

Heaven forbid ! Someone who thinks for himself! There is real (un-censored) news out there, but Digg is unlikely to give you any worthwhile pointers. There are too many sheep who just want to read about trailer trash, celebrity and sport. Meanwhile illegal wars for control of energy supplies (and pipelines) go on unnoticed, and a non existent war on (T)error to shut down personal freedom waft by without analysis. "Don't Taze me Bro!" Try:
www.whatreallyhappened.com
www.rense.com
www.infowars.com
and if you like your news "safe", "sanitised" and carefully "filtered", Drudge.