Rumor Mill: Google Acquiring Digg
According to ValleyWag’s rumor, Google is the latest company sniffing around Digg.
…we hear [Google’s Marissa] Mayer is pushing hard for an acquisition of Rose’s Digg, for a price below $200 million…A source familiar with the talks says Google and Digg reached an agreement last month; it’s not clear whether the offer was verbal or a formal termsheet. So why the delay? One possibility: Digg may have been exploring whether it could hire a rock-star CEO and raise more money.
Why would Google want Digg? Well, a couple hundred million is nothing to Google. Even if Digg users were to abandon ship, Google would have its hands on valuable algorithms and data on what makes a news story popular.
Of course, I can save them the cash and tell them.
What makes a story popular on Digg? Apple, Google, Linux, Nintendo, or anything promoted by a social media marketer.