Yahoo!, Digg Acquisition Rumors at Blog . Jiboneus

Yahoo!, Digg Acquisition Rumors

edit Published by J Shamsul January 26th, 2006 in Web, Companies.
Tags: Acquisition, Companies, digg, Rumors, Web2.0.

UPDATE: Kevin dispelling the rumors at Digg blog.

This has been all over the “Web2.0″ blogosphere. It is rumored that Yahoo! Inc. to buy Digg.com for $35 million dollars. Jeremy Botter and Kevin Burton say it’s going to happen but the man himself Kevin Rose, founder of Digg, says its not going to happen (not anytime soon may be).

The direct quote over at Digg.com :

“Rumors… we are focused on features, not selling the company.�?
posted by kevinrose (64) at 10:12 PM 1/24/06

Whats with Yahoo anyway? first Flickr, del.licio.us and now Digg? If it is true that Yahoo! thinking of acquiring Digg, then it is really not technology they are after, its the user base.

Of cause Yahoo could develop a del.licio.us site or a Flickr site if they want to, but will there be any users? AOL buying over weblogs Inc. is also because of the number of readers they have.

So if you are thinking of making some Web2.0 application to sell, first you must make sure to have a very strong and loyal user base. You also have to have a business plan to make your site sustain. Big companies buying over sites is not charity, they are thinking of making money out of it. Don’t just do something for the sake of selling.

LINK [ The story on Digg.com ]
LINK [ Digg.com ]

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3 Responses to “Yahoo!, Digg Acquisition Rumors”

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1 Michael Whitney on Jan 26th, 2006 at 2:07 pm edit

In my opinion companies should not launch with an idea to sell out to Yahoo, or Google, or even Microsoft. The odds of getting bought are worse then the odds of an IPO in the boom era. As founder of Seekum (a social search engine) I am looking to build a sustaining business with real revenue. As the userbase grows the revenue potential will grow. Companies should focus on being great, and if someone knocks on your door you have a better bargaining position.
2 Jibone on Jan 27th, 2006 at 4:16 pm edit

Yes, I agree with you. The companies that are buying is looking at a sustaining business with real revenue apart from user base.