Betaworks Digs Under Sofa Cushions, Finds Change, Buys Digg
By Liviu Oprescu
PCWorldJul 12, 2012 5:14 pm PDT
The social news pioneering site–once rumored to be worth $200 million to Google–Thursday was practically given away.
In a time of billion-dollar valuations and even larger IPOs, the news that Digg was sold for a reported $500,000 is a reminder that even mighty tech titans can crash. According to the Wall Street Journal, Betaworks, owner of properties such as Bitly and News.me, picked up the social news pioneer for a tiny fraction of the $45 million Digg had raised over the years from Valley heavyweights like Marc Andreessen.
Digg, an aggregator that ranks news based on user input, was started by Kevin Rose and Jay Adelson in 2004, and by 2008 had almost 30 million users a month. Rose went on to become a tech celebrity of sorts after a famous all-smiles BusinessWeek cover with the headline “How This Kid Made $60 Million In 18 Months.” He did eventually join Google in March of this year, after the company bought his startup incubator Milk.