July 13, 2012, 10:49 AM —
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.
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
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
Tell the truth: will you miss Digg?