Digg Founder Dismisses Yahoo Rumors

    January 27, 2006
    WebProNews Staff

If Kevin Ross is to be believed, there is no more chance Yahoo will buy the popular user-generated news site Digg than it will Opera Software for its browser.

$30 million for Digg? TailRank founder Kevin Burton claimed it will happen soon, with Yahoo CEO Terry Semel writing another big check for another social network-style company:

I’ve now heard from two sources close to Yahoo which tell me that Yahoo is going to be buying Digg for nearly $30M. I haven’t yet heard from anyone working for Yahoo that this is 100% (they obviously had ‘no comment’) but I’d be surprised if we didn’t hear an announcement by early next week.

Or maybe even $35 million? Blogger Jeremy Botter thinks so:

…as little birdies have informed me that Yahoo has an offer on the table to buy Digg for somewhere in the range of $35 million dollars.

I don’t know how true it is, but the same guy DID tell me that Yahoo was buying Delicious, and sure enough, they made an announcement two days later.

It’s not happening, Rose commented. He tried addressing the rumor in the comments on Digg about the topic, but that doesn’t seem to have doused the flames:

Then, I woke up this morning to see TechCrunch (great site btw), CNN, CNET, and a few others fueling the rumors. So, just to set things straight – we are not in talks with Yahoo. We are focused on creating new features and expanding digg into new areas beyond tech. The recent reports about digg and Yahoo! are just rumors, nothing more.

Yahoo could just get the code themselves from the meneame.net project, an open source version of Digg licensed under terms of the GPL. Of course, that would then obligate Yahoo to make its source code available, and opening source code isn’t the same thing as making some web services available through API calls, so an acquisition, should one even be under consideration, would make more sense.

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David Utter is a staff writer for WebProNews covering technology and business.