“Digg Button v1.0” by Laughing Squid via Flickr

nabeel:

For all it’s non-hotness, [Digg] is clearly dominating the space of link sharing. StumbleUpon, Yahoo Buzz, and Reddit combined together reach almost Digg’s size, and is also averaging more visits per person (2.7 visits a month) than StumbleUpon (2.3) or Reddit (2.16).

It sounds like a lot of this is thanks to excellent integration with the Facebook ecosystem, an interesting case of using FB for growth outside of their system.

Rafer sez:
Integrating Facebook Connect has certainly added value for Digg, but is it only a particular sort of value? Clearly any profitable revenue stream on Digg.com itself will now be much bigger and cash flow is good, but what about M&A? Now that Facebook may well know more about the Digg membership than Digg itself, how would an acquiror value the user base? At some point does the historic M&A Control Premium invert to a Control Discount as we all use more and more web services?

Those web services make us so much more capital that there’s no other way to operate but the economic implications will take a while to sort out.

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   Rafer sez: Integrating Facebook Connect...certainly added value for Digg, but is

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Posted 17 July 2009 at 15h44 |  4 notes and  Comments