Google Doesn’t Dig Digg After All

The Google/Digg acquisition negotiations were in full swing as of last Tuesday, had passed the term sheet stage and the two companies were in final negotiations in the $200 million range. But sometime this last week Google decided to walk from the deal. Digg was notified on late Thursday or Friday.

Google was in the due diligence stage of the deal, where they peer deep into Digg’s technology and financial statements. Most term sheets are non binding, so anything that gives the buyer pause can be used as an excuse to walk away – but generally the buyer already has a very good idea what they are getting well before the term sheet stage.

Two sources close to the companies suggested that some issue that came up during technical due diligence was to blame. One source said that the issue was more personality driven, and that Google decided after spending more time with Digg’s top team that there just wasn’t a fit.

Either way the deal appears to dead and can be added to the long list of failed Digg acquisition deals. And when a company is “left at the altar” other buyers are usually hesitant to step in.

So what will Digg do now? We’re hearing they’ll just push through with a new round of financing. Digg hired Allen & Co. to represent them in the sale, but the investment bank is just as good at closing massive venture financings, too (they represented both Slide and Ning in their recent a half billion dollar valuation financings).

[cb type=”company”]Digg[/cb]
[cb type=”company”]Google[/cb]

TechCrunch is a content partner of

About The Author

Comments 80

  1. Ralph
  2. Ash
  3. TheAnand
  4. Agent Magenta
  5. Archie Pennies
  6. Patrick
  7. Craig
  8. team ray
  10. Paul
  12. Jonfen
  13. crash
  14. Geiger
  15. sean
  16. ajaz
  17. Andrew
  18. Geordie
  19. Melvin
  21. Simon
  22. Google Massacre
  23. meethere
  24. Enkay Blog
  25. Enkay Blog
  26. Enkay Blog
  27. Enkay Blog
  28. Enkay Blog
  29. Erica DeWolf
  30. Erica DeWolf
  31. Erica DeWolf
  32. Erica DeWolf
  33. Wcnktm
  34. WebIncomeStream
  35. Mark Mitchell
  36. Louisville Website Design
  37. Kevin
  38. My Awesome Blog
  39. Make Money Talks
  41. Dick
  42. Dick
  43. petnos
  44. meethere
  45. Sohan
  46. Chris Abernethy
  47. Chris Abernethy
  48. Chris Abernethy
  49. Bruno Silva
  51. OnlineGodfahter
  52. Bryn Youngblut
  53. Popular Wealth
  54. Popular Wealth
  55. Wesley
  56. malapu
  57. Michael
  58. Affiliate Marketing
  59. Action
  60. Samar Eldin
  61. Dick
  62. Mike
  63. Winning Startups
  64. Dick
  65. Zak Show
  66. Zak Show
  67. Zak Show
  68. Zak Show
  69. massivemarketingplr
  70. Web Marketeer
  71. Web Marketeer
  72. Web Marketeer
  73. Web Marketeer
  74. Web Marketeer
  75. Web Marketeer
  76. terminator69
  77. Kristina