Why Digg.com Will be Bought in 2007!

Throughout all of 2006 rumours have flown that Google will buy Digg.com.…  This has been merely speculation.…  Historically Google only makes a purchase for 1 or 2 reasons.

1. Google Wants the Employee Talent of the Target Company
2. Google Wants the User Base of the Target Company

Last I checked Digg.com only had 12 employees so that erases motive for the first reason.…  Secondly Google has no need or desire to obtain Digg’s users.…  Highly technical Digg visitors are many times less likely to click on Google’s Ads so they are worth many times less than the average internet user.

Now at the start of 2007 a rumor has surfaced that Digg wants to get into search engine business.…  Currently Digg’s search engine is rather lacking.…  However with an additional 12 employees they might be able to easily mutate their current Digg database into a minor competitor.…  Digg has a large technical following so finding ultra-high quality employees with the brains to do the job would be rather easy.…  With Search Engine Revenue around $10 billion, if Digg could take just 1% of that it would equal $100 million anually.…  While I don’t believe that Digg could turn those visitors into profit, it would take $100 million out of the market regardless.…  It seems like simple arithmatic for a big name such as Google, Yahoo or MSN to come in, buy this company just to keep them out of the search market.

Secondly, you would buy much more goodwill than just your $150 million.…  By keeping Digg relatively unchanged, you earn the support of all of Digg’s users.…  This could help MSN greatly by helping heal the beating they routinely get as being dubbed an “evil” company.

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