Google Pulls Out of Digg Acquisition

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Just a quick post today to update on the Google/ Digg acquisition.

It turns out that we missed this late last week but Google has officially pulled out of its proposed purchase of Digg for $200 million.

The rumour had been circulating for months that Google was looking to add social bookmarking site Digg to its catalogue of acquisitions. The proposal was worrying for Microsoft who only last year signed a three year advertising deal with Digg which would have been extinguished.

“Sources close to the companies suggested that some issue that came up during technical due diligence was to blame”.
and that “that the issue was more personality driven, and that Google decided after spending more time with Digg’s top team that there just wasn’t a fit.”

Many had debated the proposed acquisition with Google having a varied track record when it came to buying popular social networks. YouTube was one success story with the purchase of Jaiku as big a failure user-sign ups having been closed for the last 10 months.

                    

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