Google appears to have come to their senses and have backed out of the Digg purchase deal. It appears that part of the deal involved Google taking a look at Diggs assets, failed attempts at other take overs, and the real cause may have been personality conflicts. According to TechCrunch, insiders indicate that Google felt that the Digg folks were not a good fit. Which makes one wonder? If personalities were the real issue, you can always replace the people at Digg.
According to the article it also states:
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.
Part of the money game in Silicon Valley is to come up with an idea, attract investors, make your self popular and than sell. However, there appears to be one slight problem with Digg. Popularity doesn’t necessarily equal $. Google may have saw the light, before they got to the end of the tunnel. In either case, with Google dumping Digg, the company may lose some of its financial attractiveness.