Digg flames out, sells for $500,000 (or maybe more)

Credit: Flickr/smemon

Early social network Digg, once shopped for over $200 million, just sold to Betaworks for $500,000 and 'considerations.'

The Wall Street Journal sets the price tag at $500,000, quoting three of the famous "people familiar with the matter." TechCrunch believes that number is only part of the deal, since Digg makes more than that per year in advertising. They quote Digg CEO Matt Williams saying, "the over consideration is significantly larger," but Williams doesn't provide details.

No matter the price, the fact that Digg, once considered a top-tier social network site that defined the Internet, has crashed to this level is painful for many (The Atlantic). The voting system controlled not by number of votes but an algorithm meant only those who could game the system got to the front page. When a site doesn't trust their community, the community leaves. And takes their value away with them.

Smells fishy

Something does not smell right here. We wonder why the American people are skeptical about wall street?

Joe Lucido on wsj.com

Instagram for $1 billion and Digg for $500k? Something doesn't seem right in the industry.

Wayne Harrel on techcrunch.com

Digg itself was bought for $500K, with some arbitrarily valued Betaworks equity (though even then in 7-figures – and not for Digg) thrown to its VC backers as part of the transaction to sweeten the pot a little. Pretty standard practice for a VC investment gone sour.

atimoshenko on theatlantic.com

This was a great acquisition for Betaworks, they are going to get a ton of buzz when they make the move.

Walker Williams on techcrunch.com

Perps

The author is a bit off- facebook and twitter didn't have anything to do with digg's demise, it was reddit.

Kevin Stevens on wsj.com

Everyone who was annoyed with the new Digg could simply jump ship to Reddit with a couple of clicks, and once they got over the interface, would find that it was like the old Digg but with a smarter community.

Mujokan on theatlantic.com

Self-inflicted wounds

It had nothing at all to do with Reddit. It had everything to do with Digg's leadership foisting on their users one of the most abhorrent redesigns in Web history.

Andre Richards on wsj.com

I stopped visiting Digg years ago when for some reason it was unreadable on both Firefox and Chrome with the latest versions.

Kevin Hydak on techcrunch.com

As a guy who owns a social network this article does not give hope to people like me.

SportsConnect on theatlantic.com

Does anyone still use Digg?

Ryan Jennings on techcrunch.com

Tell the truth: will you miss Digg?

For the latest IT news, analysis and how-tos, follow ITworld on Twitter, Facebook, and Google+.

Now read this:

Developer declares 'I am done with the Freemium Business Model'

Khan Academy offers JavaScript as their first computer language

Study says Facebook profile can predict job performance

Insider: How the basic tech behind the Internet works
Join the discussion
Be the first to comment on this article. Our Commenting Policies