Yahoo! and Digg to wed?

Rumors are flying around the blogosphere today that seem to indicate that Yahoo! will be announcing the purchase of Digg.com for a sum that is floating around $30-$35 Million. Quite the turn around for Kevin Rose and the gang as they just got $2-5 million in investment in the latter half of 2005. At this point, these rumors are just that. Rumors. In all honesty, I wouldn’t be surprised if it happens though. Yahoo! has been on a buying binge lately, and Digg would fit nicely with the other sites that they have purchased. Think integration with del.icio.us and flikr.

Kevin Burton appearantly started the whole thing with information from two sources close to Yahoo. Om Malik and Russell Beattie both think it’s hyped up linkbaiting. And Ben Barren(with his beautiful women) thinks it makes sense.

Obviously, until we get verification from either someone on the inside of Digg or Yahoo, these will stay rumors. On the other hand, the iPod video was rumored for months before the purchase. The Ebay-Skype deal was rumored for a few days before the announcement. Unless this turns out to be a complete hose-job linkbaiting extravaganza, our feeling is that we will be all talking about the logistics of the purchase by late next week at the latest. It does make sense for Yahoo to add Digg to the family and Digg would be an excellent partner to other services that Yahoo already has. We’re just waiting to hear the official word.

UPDATE: Kevin Rose has made an official entry into the DiggBlog at diggtheblog.blogspot.com

Yesterday, I saw a couple digg stories reporting rumors about Yahoo! acquiring digg – I posted a small comment on digg dispelling the rumors and thought that was the end of it. Then, I woke up this morning to see TechCrunch (great site btw), CNN, CNET, and a few others fueling the rumors. So, just to set things straight – we are not in talks with Yahoo. We are focused on creating new features and expanding digg into new areas beyond tech. The recent reports about digg and Yahoo! are just rumors, nothing more.

Digg on,

Kevin

So, for now our hopes are dashed.  Or renewed. Depends on your point of view.

[tags]digg, yahoo, kevin rose[/tags]

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2 Responses to Yahoo! and Digg to wed?

  1. Irrision says:

    I’ll believe when I see it. Kevin Rose would be ill advised to sell digg for a measely $35 million. If he actually let the site mature more it would be worth quite a bit more once it had advertising revenue coming in and an even more established user base. Besides what would he do with $35 million? That won’t last long if he wants to produce Systm professionally.

    I guess we will see…

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