Yellow Journalism In The Valley
Friday, August 4th, 2006 by Mike Rundle
You have to be fucking kidding me. How could BusinessWeek be so irresponsible as to write the most blatant of lies on the cover of their magazine?
How it happened:
1. People “in the know” estimate Digg’s worth at $200 million
2. Kevin owns approximately 30-40% of that imaginary figure
3. 30% of that imaginary figure equates to $60 million of imaginary money
Sure sounds like he made $60 million in 18 months to me….
Who This Really Affects
I left a comment at JF’s blog saying that this cover is unfortunate for a number of reasons, and in my mind the #1 problem is that it now puts unrealistic expectations into the minds of young entrepreneurs scraping it out in their college dormrooms or studio apartments. I know my parents will see this cover and immediately take it at face value, then turn around and ask me where my $60 million is, or ask if Digg is similar to 9rules, or any other host of questions. I could explain to them why he didn’t actually make any money yet (”We have a clear path toward becoming a profitable company.” -Kevin Rose) and it’s a simple bubble extrapolation but none of that will matter because the dollar signs will already be in their mind. Absolutely fucking worthless journalism.
Reader Comments
6 Responses to “Yellow Journalism In The Valley”
I hear what you’re saying here Mike, but I would have to add that if any young entrepreneurs are actually hanging any kind of vicarious expectations on what they read in a magazine, they’re probably headed for a fall anyway.
As far as your parents…if you ever decide to raise a family and make that information public, you ain’t seen nothing yet.
August 4th, 2006 at 1:18 pm
I would like to know what his clear path is? I have yet to see a model for them.
August 4th, 2006 at 7:13 pm
Although I don’t disagree with anything said here or by Jason, I think the focus should be more on the statement:
1. People “in the know” estimate Digg’s worth at $200 million.
Perhaps the BW folks really believe that, _really_ believe that. Maybe that’s the biggest crime of ignorance committed here. After all if Digg was hitting up an IPO and Wall Street said they’ll hit that mark, I wouldn’t have much of a problem with the cover. Even though it should be worded “kid is worth” instead of “kid made”. But they do have to sell those magazines.
…
Okay, maybe not. I thought there might be something intelligent in these mental ramblings. *sigh*
August 7th, 2006 at 12:59 am
Mike,
I think you’re spot on with this entry. I was rather amazed about the piece in question myself.
However, I think we’re starting to see a trend with all the hype starting to subside a little about all the “web 2.0″ bullshit, so who knows… I’m just not real happy about the state of journalism right now. This piece is a perfect example as to why. Good insight!
August 7th, 2006 at 8:57 am
This is why i hate media and journalism. They add flavour to the news and make it crisp and sensational so as to serve their private ends. Even media today is suspected of an axe to grind, there’s no reliable source left for people anymore. Atleast this was’nt expected of Business Week.
August 8th, 2006 at 1:28 am
What they’ve quoted is his “paper value” and I don’t think there is anything wrong with that. If Digg is worth $200mil, as analysts may predict, and he owns 30%, he’s worth $60mil.
Are you arguing that Digg is not worth $200mil or that because he doesn’t have the money in the bank, he didn’t infact make it? I’m a little confused.
The thing with these types of companies is their advertising $ potential. Murdoch see’s value in furthering his media distribution network so he invests $365 mil in myspace. Given that analysts now say that was a bargain, who knows what Digg could be worth. It’s got potential and all it will take is a media mogul to lap it up!
August 11th, 2006 at 5:27 am
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