July 23, 2008 at 14:06Google completes $ 200 million Digg talks
For the past month and a half, Google has been in intensive negotiations with Digg owners to purchase this UGC news site. Unofficial information about the negotiations leaks through numerous sources both within the company and beyond. According to reports, the parties have already signed an agreement of intent and are close to the final agreement under which Digg will become part of Google News. The transaction value will be about $ 200 million. This is a good price, given that the total number of venture capital investments attracted to the startup is only $ 11.3 million.
For the first time, Google and Digg negotiations became known in March this year . Despite the categorical refutation of this fact by the management of Digg, we now see that there was still some truth in those rumors.
At the moment, the deal is nearing completion, although the process may drag on for another few weeks. Experts even admit that the deal may not take place at all, although agreement on the main points has already been reached. It is likely that Microsoft may interfere in the negotiations.
Digg site receives the bulk of its revenue from Microsoft, with which it has a three-year contract. After a deal with Google, this contract will be terminated.
via TechCrunch
For the first time, Google and Digg negotiations became known in March this year . Despite the categorical refutation of this fact by the management of Digg, we now see that there was still some truth in those rumors.
At the moment, the deal is nearing completion, although the process may drag on for another few weeks. Experts even admit that the deal may not take place at all, although agreement on the main points has already been reached. It is likely that Microsoft may interfere in the negotiations.
Digg site receives the bulk of its revenue from Microsoft, with which it has a three-year contract. After a deal with Google, this contract will be terminated.
via TechCrunch