The Dumbest Cover Story Ever (and Why BusinessWeek Should Apologize)

BusinessWeek has embarrassed itself.  Their August 14 cover story on Digg founder Kevin Rose represents irresponsible journalism and outright silliness.

The cover screams "How This Kid Made $60 Million In 18 Months."  Intrigued (and not having heard that Digg had been acquired) I thought I'd check the story out.  All too soon it became clear that the number was completely made up.  In reality, Kevin Rose hasn't made a single penny (unless he takes a salary).  In fact, Digg is just at the break even point on $3 million in revenue. 

Most absurd is the fact that the $60 million appears nowhere in the article, except in this sentence: "At 29, Rose was on his way either to a cool $60 million or to total failure."  It appears to be a made up number based on a made up valuation of $200 million (which is cited to the oh-so-prophetic "people in the know" -- as in "people in the know say Digg is easily worth $200 million.")

Now I like Digg.  I think it has value.  Heck, it might even be good enough to be acquired someday.  But it hasn't.  And it isn't a public company with a documented value.  And it has no profits.  So Kevin Rose has not made $60 million. 

At best, the BusinessWeek cover is sloppy.  At worst, it is a sensational lie designed to sell magazines.

Either way, BusinessWeek owes subscribers an apology.  This sort of hype should be beneath a quality publication like that.

BONUS: Steve Rubel digs up an old Time magazine cover that at least shows someone who made some real money, but does seem eerily similar.

Tags: BusinessWeek, Digg, Kevin Rose, bubble

Comments

[Robert]

It was a surprise to see Kevin Rose on the cover of Business Week. However, if was even more of a shock to see him on the cover of People Magazine, just a week after Lance Bass was featured...

http://www.baytzim.com/digg/