Disclaimer
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2008
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2008
In July of 2005, Rupert Murdoch’s News Corp purchased MySpace for $580 million, so that they could gain access to the, at that time, 22 million registered users. Since that time, News Corp. has done a great job of leveraging synergies between their properties, driving traffic from MySpace to it’s other sites, from new movie releases, to Fox sports sites, to American Idol. So, given the demographic breakdown of Digg, wouldn’t it make sense for the Dirty Digger (as he’s been referred to by the British press, although mostly lately by the satirical magazine Private Eye, since around 1968) to make a play to add Digg to the News Corp. portfolio?
Well, what would it cost him? Well, investment in Digg is $11.5 million, and VC’s typically want 10-20x return on an investment, so a price of $150 to $200 million would probably be expected given the hype around Digg. Since Digg recently reported that they have 1 million registered users, that would make each registered user worth $150 at the lower end of the spectrum, way higher than the $26 per user paid for MySpace, but it still might be worth it, after all Mr. Murdoch’s own mySpace page does state that his hobby is global domination…
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