Digg acquisition falls through
Google drops its plans to buy Digg in a deal worth almost $200 million.
Sources close to both companies have confirmed that Google's plans to purchase Digg for close to $200 million have fallen through, according to a report by TechCrunch.
Google was in the ‘due diligence stage' of the deal, involving analysis of Digg's technology and financial statements, when the decision was made. Rumors of a takeover started in March when it was believed that Google, Microsoft or other media companies were keen on purchasing the social content website.
It's believed that technical incompatibility was the reason behind the Google/Digg deal falling through, while one source also claimed that a clash in personalities was to blame.
Google is now the latest addition to Digg's list of failed acquisition deals, with speculation that the company has now hired investment bank Allen & Co. to represent them in a new round of financing.