The fall of Digg: Betaworks acquires the news site for just $500,000
It was once one of the most relevant social sites in terms of news, Digg was slowly falling behind and losing the importance it would have given its users. To finally get to a sale that is making some noise in the networks just for the amount of the transaction is said that the company had acquired Betaworks remainder of Digg for just $500,000.
While the CEO (ex-CEO in a short time) of Digg, Matt Williams, said that the amount was “considerably more than that,” a mixture of cash in shares. But the issue is striking because the company had raised nearly $45 million not long ago, and site traffic was still quite significant (178 in the Alexa ranking).
The Digg model was successful at first: people sending news, and it was those same people who decided the importance of the News giving positive and negative votes. Over time, many learned to manipulate the system to their own interests, so that many important news got lost among others that were used almost as free advertising. Digg did not help that the explosion of Facebook and Twitter would make people forget a little of the site, it was always better to read the news published interesting friends or acquaintances.
Apparently Betawork plans to unify it with include with News.me Digg, a news portal similar. Do any of you will miss the disappearance of Digg?
Link: Once a Social Media Star, Digg Sells for $500,000 (Wall Street Journal)Tags: acquisition, Betaworks, Digg, News