Social news website Digg, which was at one point valued at around $175 million, has been sold to New York company Betaworks for the princely sum of $500,000.
The sale is a substantial loss for venture capitalists who have sunk some $45 million into the website since it was launched seven years ago but the new owners have decided to turn Digg back into a startup.
“We are turning Digg back into a startup. Low budget, small team, fast cycles. How? We have spent the last 18 months building News.me as a mobile-first social news experience. The News.me team will take Digg back to its essence: the best place to find, read and share the stories the internet is talking about. Right now.”
Diggs has been facing tough competition recently by the likes of Reddit, Slashdot and even Twitter and even the fact that the site still gets some 16 million unique visitors monthly has not assisted its decline. What Betaworks has in store for the once-great website should be interesting to see.
Source: The Guardian