Kara Swisher has had it with what she says is “completely inaccurate” reporting by TechCrunch. Specifically, she is ridiculing TechCrunch’s report last week that Digg is for sale and that Google and Microsoft are essentially in a bidding war:
How exciting! How dramatic! How gripping!
And: How untrue!
That’s because once you actually take time to do actual reporting, you find the story is quite a bit less exciting and dramatic and gripping–pretty much nothing more than part of the typical sniffing and circling that goes on constantly in Silicon Valley.
How does Kara know? Because she did what she says TechCrunch didn’t, which is make phone calls:
Here’s what my many and varied sources close to all the companies involved told me, related specifically to the TechCrunch report: Digg is not going around hawking itself, but using bankers to handle interest it receives fairly regularly; and neither Google nor Microsoft are poised to make a bid of hovering around $200 million (in fact, most every possible acquirer I spoke to said $60 to $80 million was a more likely price if Digg were ever sold).
This is not to say that Digg could not suddenly get an amazing offer too good to refuse, from any of the parties and others, as any company could.
And Google is a natural bidder and has to be interested in Digg, of course, given it needs to add more to its Google News product and likes highly distributed plays like Digg.
In addition, given it did a guaranteed ad deal with Digg last year and might have to have alternatives if its Yahoo bid fails, Microsoft is the other obvious candidate to own a site like Digg.
Kara then goes on to say that Digg has had meetings with everyone lately, including Google and Microsoft, and that everyone is interested in doing something with Digg (including buying them). Then she invokes Jay Adelson’s dismissal of TechCrunch’s report as completely inaccurate and ridicules Mike Arrington for standing by his source and saying Adelson is a master of obfuspeak.
So who’s right? Who will win this year’s coveted Valley’s Most Awesomest Digg Reporter trophy? You be the judge! In the meantime, we’ll just observe that
- The two reports don’t actually seem that far apart (we predict that, whatever happens, both Kara and Mike will claim victory).
- Digg is only worth $60-$80 million?
If we were Jay Adelson, we’d be even more upset by Kara’s report than TechCrunch’s. Why? Because she has singlehandedly chopped the value of one of the most-hyped companies of the past few years down to chump change. 27 million users a month, 250 million pageviews and only worth $70 million? There’s the real punch in the nose.