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Yahoo Buying Digg?

Yahoo Buying Digg?

There are some big names in the Web 2.0 and blogging world saying that Yahoo is close to buying Digg for somewheres around $35 Million (or atleast has the ‘offer on the table’). Kevin Burton writes on Feed Blog :

I haven’t yet heard from anyone working for Yahoo that this is 100% (they obviously had ‘no comment’) but I’d be surprised if we didn’t hear an announcement by early next week.

Since Digg launched, the service resonated with users who wanted a way to find hot and alternative news.

Adding to the ‘no comment’ from Yahoo is also a mixed comment (as in real blog comment) from Digg’s Kevin Rose in the rumor story which is running on Digg : “Rumors… we are focused on features, not selling the company.

So, with Digg possibly also opening up the site’s infrasturcture to covering news outside of the tech world, is there some sort of Yahoo News or Yahoo User partnership in the works? Like Yahoo adding a “Digg It” link to Yahoo News stories in return for Digg signing a long term contract to run Yahoo Publisher Network ads?

If the aquisition or partnership rumors have any truth to them, Digg with the addition of Flickr, del.icio.us, Upcoming.org, and Yahoo Answers would give Yahoo a cornered market on Web 2.0 offerings.

Aaron Wall of Threadwatch asks “why”?

When Yahoo! buys tag sites do they ever hope to building revenue streams? Or are they just trying to make Yahoo! popular within the Web2.0 crowd?

I think it has more to do with the Social Media Search model that Yahoo is implementing across its properties, and integrating Digg into Yahoo News and Yahoo 360 Blogs would add an extra social oomph into their current news ranking and recommendations offering.

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SEJ STAFF Loren Baker Founder at Foundation Digital

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ...

Yahoo Buying Digg?

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