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gnulaw (52.98)

"Google, Microsoft, said to be preparing bids for Digg" LNUX?

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May 02, 2008 – Comments (2) | RELATED TICKERS: GKNT , GOOGL , YHOO

"...User-generated news site Digg has been working with influential investment bank Allen & Co. (the ones that recently got Slide a half billion dollar valuation) for a few months now, and pitching big tech and media companies on a sale.

And despite a number of false starts, this time a sale looks like it might actually happen, and soon. We hear from a source very close to the deal that four companies are in heavy due diligence with Digg - two media/news companies, and two big Internet companies - Google and Microsoft. And Google and Microsoft are on the verge of making their bids.

Digg is prepared to take less than the $300 million Allen & Co. were floating late last year. Google, our source says, will likely bid $200-$225 million, which Digg would likely accept.

Microsoft is looking at a somewhat lower price. That makes sense, since most of Digg’s revenue today comes from a three year advertising deal that Digg signed with Microsoft last year. That deal has revenue guarantees - and Microsoft may be hesitant to value Digg based on revenue that they supply..." source: March 7, 2008 TechCrunch. Acquisition rumors by News Corp in Oct 2006 ref/ were at appx $150 Million.  Google's price is closer to $200 Million. SourceForge is currently sporting a market cap of $123.9M confirming Ali Jenab's inability to maximize LNUX shareholder value...(also see "Share buy back" Yahoo! Finance post).

digg blindsided incumbent slashdot at a game slashdot pioneered and continues to humiliate them given said takeover rumors, and digg's traffic stats (below).

So, digg.com is valued at $200 - $300M and Ali Jenab has driven LNUX's shareholder value to $123M for Slashdot.org + SourceForge.net + Linux.com.+ThinkGeek.com +...+ Accordingly, Ali Jenab's future and LNUX's rests on its earnings report at the end of this month, IMO. There is simply something very wrong with this picture...

Alexa Traffic Stats: Digg and SourceForge

2 Comments – Post Your Own

#1) On May 03, 2008 at 9:17 PM, gnulaw (52.98) wrote:

It appears Generation X/Y Web 2.0 startups like digg are showing baby-boomer mindset Web 1.0 companies like LNUXs SourceForge.net, Linux.com, and slashdot.org what the web's capabilities really are, what Internet consumers really want as well as what the definition of shareholder value is. I also sense LNUX lacks any technology visionaries and are simply beating formerly great Web 1.0 technology websites beyond the point of diminishing returns...

It is mind-boggling Ali Jenab does not understand this and if he/LNUXs BoD does not relinquish control as CEO [now] or put LNUX in play [now] with someone like Allen & Co. shareholder value will be zero.

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#2) On May 05, 2008 at 7:51 PM, gnulaw (52.98) wrote:

After the closing bell, May 5, 2008 SourceForge Names Chris Dobbrow Vice President Sales source:

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