The price is wrong.
Digg is truly the most useless of the big Web 2.0 sites. It won’t make you money and it can’t make money. It’s early investors and founder will make money and if they pull off a sale, management and the founders will have done their job.
Digg has tried to Digg their ‘acquisition’ for almost two years. They have Mike Arrington as their shill. He writes a post at noon when he wakes up and ‘timestamps’ it 4-30 AM so it looks like he never sleeps and he’s breaking news. Yawn. The whole strategy is not horrible as the media companies don’t budge until they hear that someone else has shown interest. If it does not work the first few times though, you end up stale.
The latest rumor started by Mike is Google. That would imply that Google needs traffic from the lunatic fringe. They don’t.
So far, the media companies have not liked what they see, be it price and/or opportunity. No surprise to this blog.
If they are truly up for sale and they have not gotten a deal done during this web 2.0 binge, you are on your way to smaller founder returns. Not horrible at all, and I think it’s smart for Kevin to be trying everything he can do.
He of course knows more than anybody, how little influence his site really has for everyone but him.