News Corp Offered $100M for Digg?

Could News Corp have offered $100M to by Digg?

Last month would have landed Kevin a jackpot as reports came in that News Corp’s Rupert Murdoch was offering over $100 million for Digg. In Leo Laporte’s TWiT podcast netcast ( This Week in Tech Episode 77: Kiss My Ring, 1:16:25), he mentioned that Kevin (and maybe even CEO Jay Adelson) wanted to take it.

BUT and that’s a big but, the investors weren’t willing to settle with anything less than $150 million. Now, that’s what happens when you take investors. You don’t really get to say when and how you want to get compensated with a pet project that turns out get a lot of attention.

No way. The original $2.8 Series A was done by Omidyar which is an 11x ROI assuming they own 30% of Digg. The investors might have veto rights due to their preferred stock but I highly doubt they’d turn down an 11x ROI. If Kevin and Jay would have pressured them they would have almost certainly approved the deal.

  1. Do we know for certain that that is the only round that Digg took?

  2. David Sze of Greylock also invested in Digg.

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