Comments on: Yahoo+Digg Possible? http://www.pligg.com/blog/15/yahoodiggpossible/ Pligg is a Social Netoworking Content Management System that lets many users submit and rate news items. Sun, 23 Nov 2008 15:21:37 +0000 http://wordpress.org/?v=2.6.3 By: podigle http://www.pligg.com/blog/15/yahoodiggpossible/#comment-10 podigle Mon, 30 Jan 2006 11:46:28 +0000 http://www.pligg.com/blog/2006/01/27/yahoodiggpossible/#comment-10 Whether Digg sells or not (and I think it will, not sure if it will be to yahoo, but no one else really is in the market for it at present) will not be upto Kevin and the crew. As Digg received a reported $2.8 million in VC from Greylock Partners and Omidyar Networks last year, the people behind that capital will determine when they sell, and for how much. Traditionally VC like to receive a seven to ten-fold return on the estimated market value at the time of funding. I have read that Digg may have been valued at about $7 million at that stage. That puts the present market value of Digg at anything upto $75 million. Now the VC people may be willing to accept less as the time frame for their return is quite small, less then a year I think. In this case, they may go for $30 million. I am not sure how much Kevin and the guys will get out of this, but I would think he will be able to smile a lot. Whether Digg sells or not (and I think it will, not sure if it will be to yahoo, but no one else really is in the market for it at present) will not be upto Kevin and the crew. As Digg received a reported $2.8 million in VC from Greylock Partners and Omidyar Networks last year, the people behind that capital will determine when they sell, and for how much.

Traditionally VC like to receive a seven to ten-fold return on the estimated market value at the time of funding. I have read that Digg may have been valued at about $7 million at that stage. That puts the present market value of Digg at anything upto $75 million. Now the VC people may be willing to accept less as the time frame for their return is quite small, less then a year I think. In this case, they may go for $30 million.

I am not sure how much Kevin and the guys will get out of this, but I would think he will be able to smile a lot.

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