According to TechCrunch, Google has walked away from its $200 million dollar acquisition of Digg. Apparently, after going through the stages of due dilligence, where Google dives deep into Digg’s financials and technology, a red flag came to surface, calling off the deal.
This isn’t the first time unfortunately Digg has suffered at the hands of an acquisition gone wrong as they have a long history of flirting with Yahoo.
Michael Arrington, after speaking with anonymous sources close to the deal in his TechCrunch post, states that the issues surrounding Google’s decision to pull out may not have been technologically driven and more so, personality driven.
Having watched first hand the disintegration of an acquisition I had an equity stake in, fully due to personality clashes between CEO’s, I can understand the danger in integrating the culture of one company into another. I’m a huge Digg fan and want to see success for their founders, but hopefully, they can avoid an exit strategy based on acquisition and focus on one more self sustaining.