New York technology development firm Betaworks has agreed to buy news-sharing website Digg, in an attempt to revive a company that was early to social media but outmaneuvered by rivals like Facebook Inc. FB -0.52% and Twitter Inc.
Under the deal, which Digg confirmed closed Thursday, Betaworks is buying the Digg brand, website and technology. The price was just $500,000, three people familiar with the matter said—a pittance for a company that raised $45 million from prominent investors including LinkedIn founder Reid Hoffman and Marc Andreessen.
Betaworks is acquiring a website that still has a well known brand and sizable audience of more than 7 million visitors per month as of May, according to comScore. The company intends to fold Digg into News.me Inc. a digital media startup that Betaworks launched in April 2011.
12:05 am on Jul 13, 2012 (gmt 0)
Wow. I had to blink twice when in saw the $500k figure.
The story of a web site and community which had so much potential and yet decided to ignore the wishes of their users who wanted a rollback.
I recall Kevin Rose claiming that rolling back to the previous version was impossible and that they would 'improve' on the disaster that they had created. In my world, we have backups of databases and code stored on servers, blu-ray discs and hard drives.
I would have personally raised the funds to purchase the site, the older versions of code and the membership just so that I could revert it back to what it was and bring back the original Digg.
I've never heard of news.me and to be honest, the site looks suspicious.
It really was a cool site back in the day.
12:44 am on Jul 13, 2012 (gmt 0)
When something went to Digg's homepage it could really drive the traffic.
Had a blog post hit their front page once and about 20K visitors hit in a couple of hours.
Sad they were too greedy to sell it when it still had value, probably the VC's wanting to hold out for a big overvalued cash out and now they get squat.