Just yesterday, Valleywag reported a rumor that News Corp. might be buying Digg.  I’ve already gone to great lengths about Digg’s double-edge business model: your main asset is the community, and there’s really nothing proprietary about it.

Today, Tech Crunch writes:

Digg users, including top contributors, are showing an increasing amount of frustration with the Digg community, and many are leaving. Conspiracy theories that Digg auto buries stories with certain topics or linking to certain sites only compounds the problem.

Yeah.  Digg will eventually be acquired, I think, but anyone that writes the check needs to understand the flight risk.  I think 2007 is certainly the year that social media came crashing down to earth.

Despite all of the hoopla:

- Reddit sold in 2006 to Conde Net

- NewsVine sold in 2007 to MSNBC

I’d say neither deal broke the bank.  Social media scales, but the business model sucks.

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