Why Would Microsoft Digg?
 Joe Wilcox
News Commentary. I can't think of many good reasons. |
The rumors are out there. Digg is up for grabs, for as little as $200 million. For a company that spent about as much on a puny Facebook stake, surely Microsoft could get into the bidding—as it is rumored to be. But why?
Like Twitter, there's not much of business model around Digg. Both services are phenoms, but for how long? This morning, my colleague Steven J. Vaughan-Nichols suggested that I write about Digg and Microsoft. I initially scoffed at the idea because an acquisition makes little sense. On reconsideration, that's reason enough to blog. SJVN suggested Digg founders are getting out while the going's good. I agree.
Digg is a big traffic driver; no question about it. But it's long-term value, at least for Microsoft, is limited:
- Strike 1: Digg doesn't even make ComScore's list of Top 50 Websites.
- Strike 2: Digg is a way station to other destinations. It's not a place where people spend enough time to make advertising beneficial.
- Strike 3: Digg's real beneficiary are the sites receiving the traffic. People like me love it, and Microsoft doesn't need to buy Digg to get the traffic benefit.
- You're Out: There's no real social community around Digg.
Two scenarios might justify an acquisition:
- Microsoft could buy Digg just to keep Google from getting it.
- Microsoft bean counters could see Digg's traffic as being enough to boost the company's overall sites traffic and, therefore, worth running as a loss leader.
I like Digg. How could any blogger or journalist not like Digg? The site drives traffic to editorial content or commentary. But my liking Digg—or anyone else, for that matter—doesn't make it a good Microsoft acquisition.
Something else: Microsoft wants to buy Yahoo for big money, which means smaller deals will need even more justification. There isn't enough, or shouldn't be enough, for Digg.
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Comments (5)
I could think of one reason: Micro$oft might want to subtly control (ooppss... let's just say "influence") the traffic passing through Digg in some way that benefits the company (imagined or otherwise). That may not be right and it may take some doing, but neither of those have never stopped Micro$oft from getting its way.
Posted by Maddog | March 10, 2008 1:01 PM
I could think of one reason: Micro$oft might want to subtly control (ooppss... let's just say "influence") the traffic passing through Digg in some way that benefits the company (imagined or otherwise). That may not be right and it may take some doing, but neither of those have never stopped Micro$oft from getting its way.
Posted by Maddog | March 10, 2008 1:03 PM
I'm not a fan of Digg - too much trivial fluff.
Posted by JohnJ | March 10, 2008 1:58 PM
I like the Digg website, and feel its an important site for information, although, not all of it is of course correct.
M$ has already got the ad server business for Digg. Sort of like M$ already has the milk, now do they really want to buy the cow? Of course if Google buys it, bye bye the ad revenue. Which is probably not that much anyway.
Digg has a lot of posts about M$ and its doings. Few are positive about M$. Few Digg members are in favor of "the empire" buying Digg as well. Google however does not have that problem, and the social news, or soap box format, actually would seem to be a good fit for Google. Google would also get the advertising bucks from Digg that M$ now enjoys as a bonus. While I can just see Digg users fleeing like refugees the acquisition by Microsoft. So I think the main reason for M$ to buy Digg, is like Maddog has said, to control information. And one of the information that would be controlled, would be the negative posts about Microsoft itself. Once MS stamped out Digg, another site will spring up to replace it.
Sadly, Digg, and perhaps Slashdot, are two of the better places to really see what Microsoft is up to. MS Watch could be, but MS Watch has their moments when they want to be "an advocate" for MS, instead of just trying to tell us, how it is. To be fair though, lately the articles here have been quite balanced.
Posted by chips | March 10, 2008 2:23 PM
While I can just see Digg users fleeing like refugees the acquisition by Microsoft. So I think the main reason for M$ to buy Digg, is like Maddog has said, to control information.
Posted by karina | March 11, 2008 8:45 AM