You gotta love rumors. The rumor of the day today is Yahoo’s announced purchase of social news site Digg. If this is true it’s a horrible move on Yahoo’s part. Sure, they are trying to snatch up ‘Web 2.0′ companies but Digg is not worthy. Digg provides little value to an average user. Digg proved a concept of socializing aggregation of content but they implemented poorly. Most of the stories suck. There are flaws in the application. The comments on it are worthless flaming for the poor soul who posted an article they found interesting.

Flickr and del.icio.us are value creating services. Yahoo purchased Flickr because our parents use flickr. Our parents will be using something like delicious soon. My parents could care less about Digg.

Plus a $30M price tag? Wow. Give me $20k and I’ll build the same thing. I know it’s not about the technology but the user base. Apparently Yahoo has forgotten that they already have a user base. And just because people like myself may use digg, the acquisition is not going to move me into Yahoo’s camp. I’ve resisted Yahoo after both of their previous ‘web 2.0′ purchases.

We had a comment by Danny Kurian on a recent post of mine concerning Yahoo’s acknowledgment of its second tier status in the search sector. He said that this claim alienates core developers on Yahoo’s search team. Is this not worse for internal morale?

Kevin Burton’s Feed Blog: Yahoo Will Buy Digg - Announcement Early Next Week

technorati tags: yahoo, business, digg