Digg Social Bookmarking Site Sold for $500K

July 13th, 2012 at 2:54 pm

Digg, a social bookmarking website hailed as one of the “Web 2.0” pioneers, has been sold for only $500,000.

The company accepted the acquisition offer by Betaworks, a New York-based technology development company. Betaworks has announced that it has no plans of retaining any of the staff.

Founded in 2004, Digg is one of the first websites that allowed users to add their own content and interact with other users’ content. It was valued as much as $160 million, but its influence waned with the introduction of Facebook, Twitter, and other social networking sites.

While Digg has received high-valued offers, the company settled to Betaworks because it had what Betaworks founder John Borthwick claimed as “the best plan for reviving its brand.” Borthwick will also take over as the CEO of Digg.

Digg will resurrect as a cloud-based application to complement the current News.me iPhone and iPad apps that Betaworks developed.

Source: Wall Street Journal, via The Telegraph


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