Digg the recommendation engine that attracted a little under 16 million visitors from across the globe in August has got a valuation close to $175 million in the latest round of funding. In the current round Digg has managed to raise the bar by $29 million.
This deal comes off as a replacement to the one Dig had been planning to have with Google and that had been valued higher at $200 million; which met an end as Google took a walk away from it. The management did wait for it to be reconsidered but they decided otherwise and pursued the current one.
There has been reports of Digg’s founder Kevin Rose and CEO Jay Andelson had been playing around with their personal stock, however the value with which they had been running around was much lower than one that had been anticipated.
I still wonder as to what made Google put Digg at $200 million and more importantly why it had to pull off at the end? Whatever the case be I guess that failed deal (one more for Digg) might very well have made other investors think twice before coming up with their proposals for financing/buy out (it’s quite natural when things like this are a common occurrence for a company).
Im interested to see that Digg has a much decreased price tag. Over at Crenk we previously wrote a short article about why they cant sell!! http://crenk.com/digg-why-the-hell-cant-they-sell-their-company/
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