Oh how the mighty have fallen. Previously valued at around US$200 million at its peak, Digg has now been sold to Betaworks for, reportedly, a mere $500,000. The price is absurdly low, considering it just raised US$45 million from investors. That said, that figure is being contested as outgoing Digg CEO Matt Williams said that "the overall consideration is significantly higher" and that the deal includes a combination of cash and equity.
Founded in 2004, Digg was massively popular until a series of redesigns began to turn users away. The straw that broke the camel's back came in 2010 with Digg V4, a site relaunch that went down really bad with users. Today, Digg is estimated to draw between 4.5 to 7 million unique visitors each month, a far cry from its heyday.
With the acquisition, Betaworks intends to incorporate Digg into its News.me service and wants a new version of Digg, one that goes back to its roots of helping people find the best content on the Internet. According to the deal, none of the existing Digg staff will be brought over except for transitional roles.