In the long series of Digg-failed-acquisitions, there’s a new one at the horizon. Last week, rumors said that the Mountain View giant, Google, was interested in buying, and negotiations (close to $200M) seemed to be in full swing.
But what you know, though they were in the due diligence stage of the deal, viewing the technology and the financial statements, Google called everything off and walked away from the deal. That’s pretty sudden, don’t you think?
Sources close to the companies, said that the deal is off mostly because the top management (Digg really has something like that? Apparently!) team may not be a great fit with Google’s needs. Could there be a personality issue? They didn’t like Kevin Rose? Do you have any better idea, because to be honest as long as the servers stay on and users don’t flee, the technology is great!
No matter what the reasons were, the deal is off and is going to stay off. However, Digg is taking steps and is looking for a new round of financing. Allen & Co. the investment bank that represented them with Google, also has a good reputation for being able to bring massive amounts of financing.
I really wonder if that’s what the shareholders want or if it’s just a safe way of keeping the business live?
