While there have been rumors that social media uber-site Digg.com has been up for sale, it’s only recently that they have hired Allan & Company (a small but reportedly influential private investment firm) to broker the deal. The price? They want a paltry $300 million dollars.
This of course leaves the question – who would want to buy it? Sure it’s cool enough but what value does it really hold? Well, not as much as some similar properties or they wouldn’t be looking for someone to broker a deal – they’d already have an offer and be looking for someone to make sure the i’s are dotted and the t’s crossed (oh, and to negotiate the highest possible value of course).
When we think about it, who stands to gain the most out of the Digg userbase (it’s primary offering asset). It doesn’t hold a value or information anywhere near what Facebook has.
If I were a betting man (holdem anyone?) I’d put my money on a max offering of $150 million (if that) and the offer will likely come from an outsider as opposed to one of the usual suspects. Perhaps if anyone … ASK’s around they might find a bidder. And no, in reality I’m not saying Ask will be the buyer but that the purchase will likely be made by one of the suspects in that level of the game. Good – but not dominant.