Kevin Rose: Yahoo Contacted Digg To See If We Wanted To Take Over Delicious
It looks like Yahoo has been looking for a home for Delicious for some time now. On his Diggnation web show this week, Digg founder Kevin Rose said that Yahoo contacted Digg to see if the company would be interested …
Context & Ripple Effects
Yahoo has spent two months trying to contain the fallout from its December 2010 decision to sunset Delicious, which followed Carol Bartz's company-wide layoff letter and triggered what coverage described as a PR disaster eroding consumer confidence. Kevin Rose's account on Diggnation is the first sign Yahoo has actively shopped the service rather than just shutting it down.
The fit is awkward on both sides: Delicious was once deep inside Yahoo's own stack, with its bookmarks folded into Yahoo Search results back in 2008, while Digg itself is mid-rebuild after Rose told Bloomberg in August 2010 that a new CEO and website were days away. The claim is unconfirmed beyond Rose's own word on his web show.
First-order effects
- If Rose's account holds, Digg inherits Delicious's bookmarking user base and years of saved-link data at near-zero acquisition cost, while Yahoo sheds a community product it no longer wants to staff or maintain during post-layoff retrenchment.
- Delicious users facing shutdown gain a potential reprieve — their links moving to an acquirer instead of an export deadline — though nothing is signed as of this report.
Second-order effects
- Rival bookmarking and link-curation services must compete for Delicious's refugee traffic in the same window, turning Yahoo's exit into a land-grab for its orphaned audience.
- For Yahoo, offloading rather than killing the service is the cheapest available repair to the confidence damage from the botched announcement — a template it can reuse when deciding the fate of other neglected community products.
Third-order effects
- The episode points toward a recurring pattern in platform governance: large portals accumulating user-created data they later cannot sustain, forcing handoffs to smaller acquirers whose stewardship becomes the only guarantee those archives survive.
- If shopping assets before shutdown becomes standard practice, buyers like Digg gain a repeatable low-cost route to scale via distressed community products, reshaping how mid-size social services get consolidated.
The trend: Portal-era giants are divesting community products to smaller operators rather than shutting them down outright, making distressed-asset handoffs a growing consolidation channel in social media.