I can’t wait to see the uprising on digg when they realize all their voting and browsing history will be transferred to Google, and Google will use this to their advantage. Users have a history of mob like behavior and are prone to shooting first and asking questions… someday.

Some possible name mashups:

• Diggle
• Giggle
• Doogle
• Gigg
• Googg
• Goig

Google has ad technology to pinpoint the best ad to the right user, so they must believe they can pay for this acquisition in a few years.

The purchase price is reportedly 200 million which is approximately $66 for every registered user, assuming there are 3,000,000 digg users. For comparison, AOL paid about $40 for every Bebo.com user and eBay purchased the social networking site StumbleUpon for about $45 million, valued at $20 per registered user. The big difference is it is extremely difficult to monetize StumbleUpon.com, while digg.com has lots of advertisements.
Diggers must click on a lot of ads – oh wait no they don’t.

Currently Microsoft is providing ads to Digg, but this should immediately change with a Google takeover.
As reported by TechCrunch and commented on by scores of excited, nervous, hyped, curious, incredulous and indifferent blogs.

Where are the Google haters? If you are furious about this deal we want to link to you.

Digg is currently the 115th most popular site on the internet according to Alexa. Digg traffic is extremely volatile, dropping over 100% last month before rebounding.

Alexa.com graph showing Digg’s popularity

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