Digg has a community culture where the users not only provide the content, they tend to dictate company policy. Recently with acquisition rumors floating around (Digg executives hired Allen & Co. to help pitch the company for a sale) the Digg community went into an uproar threatening to leave the site if Rose accepts Microsoft’s bid. That said, I think the manner in which Rose has chosen to deal with user revolts (capitulate) is dead wrong. Most hardcore Digg users think of the site as their own, and fashion themselves as co-owners rather than simply users. Rose is playing right into this thinking by backing down when faced with a revolt.
If the acquisition rumors do have any real footing, I’d be surprised if Rose and the rest of the Digg executives don’t accept one of the bids. Consider that Rose has to deal with a rabid user base, aggressive internet giants banging on the door, and VCs looking for major returns on their investments. All together that’s enough to drive anyone mad.
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