Kevin Rose: The Users shouldn’t be paid… but I’ll take $60M*

You gotta love it: Kevin Rose says users shouldn’t be paid even though 30% of the front page stories come from the top 10 users on DIGG. Congrats on the cover of BusinessWeek Kevin, but be careful counting those chickens before they hatch (from someone who’s been there).

Note: DIGG has not been sold yet, from what I understand BusinessWeek is basing the $60M number on someone telling them that DIGG would sell for $200M. DIGG is making $3M a year from what people are saying. That would give them a 65x revenue, and if they have $500k in profit a 400x earnings multiple ($1M in profits would give them a 200x earnings multiple). Wow.
.. makes Google look cheap!

Update: Here come the parody covers… Paul Scrivens, you kill me.
Update2: BW has confirmed they made the number up based on what DIGG *might* sell for some day–I misread valleywags coverage…. in the story they admit that the number is made up by unnammed sources even though they state it as a fact. they are gonna have to do a correction for this I’m sure.
Update3: Rafat and many others have taken apart the story.

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