1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Digg Sells for Just $500,000 LULZ

Discussion in 'BlackHat Lounge' started by CEPI, Jul 13, 2012.

  1. CEPI

    CEPI Power Member

    Joined:
    May 15, 2009
    Messages:
    502
    Likes Received:
    1,922
    Occupation:
    Business Turn Around & Management Consultant
    Location:
    Cosmos
    It looks like the $500,000 price reported by The Wall Street Journal was for Digg?s core assets. Digg?s investors likely got additional equity in Betaworks and Betaworks-backed companies.

    How the mighty have fallen. The social sharing site Digg has sold for just $500,000 to New York startup incubator Betaworks.

    The small selling price just goes to show how quickly fortunes can turn for even the hottest web startups. According to The Wall Street Journal, Digg took more than $45 million from investors since launching in 2004.

    On its blog, Betaworks says it is going to fold Digg into the News.me team.

    The company also vows that it is going to ?turn Digg back into a startup. Low budget, small team, fast cycles.?

    Since the release of Digg v4, dubbed ?the new Digg? in the summer of 2010, the once-hot company has met with a series of challenges. Poor reception led to plummeting traffic, changes in management and layoffs. Digg co-founder Kevin Rose left the company in March 2011.

    In May, the Washington Post Company?s Social Code hired away more than half of Digg?s staff. Since then, The Journal reports that a number of companies bid on the remaining assets.

    Digg CEO ************* shared the news to the Digg community . Williams says that Betaworks will still unveil a new cloud-based version of Digg as a complement to the existing News.me offerings. Williams will join Andreessen Horowitz as Entrepreneur in Residence as soon as the transition to Betaworks is complete.

    At this point, it almost looks like the most valuable part of Digg is the once-hot brand name. It may be hard to remember for some web users, but in a land before the mainstreamification of Reddit, Digg was the place to be.

    We look forward to seeing how the News.me team integrates the assets into its service.


    http://mashable.com/2012/07/12/digg-sold-for-500000/
     
  2. BreakAllTheClocks

    BreakAllTheClocks Regular Member

    Joined:
    Apr 23, 2010
    Messages:
    421
    Likes Received:
    242
    They turned down a $200 million buyout from Google just 4 years ago. Very sad for Owen.
     
    • Thanks Thanks x 2
  3. deviatus

    deviatus Power Member

    Joined:
    May 25, 2007
    Messages:
    517
    Likes Received:
    387
    Reddit ftw

    Reddit knew how to build a community around bookmarking, Digg didn't.
     
    • Thanks Thanks x 1
  4. kideze

    kideze Elite Member

    Joined:
    Jun 23, 2009
    Messages:
    1,719
    Likes Received:
    330
    Location:
    the GRAND valley
    Well hold on there, Digg started out great but then moved in many wrong directions, lost many of its workers and changed their website to were loyal users left. So they were on the right path but just make a bunch of wrong moves. Reddit took a lot of insight from digg, im sure of it
     
  5. datadyne

    datadyne Junior Member

    Joined:
    Feb 12, 2011
    Messages:
    170
    Likes Received:
    78
    Gee that's sad, there are probably members on this board that could afford to buy it. For all we know it could have been Meathead or BTB!
     
  6. Duffers5000

    Duffers5000 Elite Member

    Joined:
    Apr 1, 2012
    Messages:
    2,467
    Likes Received:
    7,615
    The real lesson for lots of dot com idealists is......When google-microsoft-facebook etc offer you a truck load of money for your website you should rip their arm off..Websites have less loyalty than restaurants...all it takes is a redesign or new format before you decide to not bother with a site you have frequenting for years.. I have friends that lived on Gawker who just gave it up when the new commenting system came in...I mean its not as if there isnt a couple of thousand new sites to choose from every day.
     
    • Thanks Thanks x 1
  7. lanbo

    lanbo Jr. VIP Jr. VIP Premium Member

    Joined:
    Aug 23, 2009
    Messages:
    3,433
    Likes Received:
    595
    Home Page:
    Very sad to see this
     
  8. steelballs

    steelballs BANNED BANNED

    Joined:
    Dec 5, 2008
    Messages:
    1,832
    Likes Received:
    4,562
    Excuse Me!

    Digg took more than $45 million from investors since launching in 2004.

    What is there to be sad about after they have trousered $45 million
     
  9. bobbylove321

    bobbylove321 BANNED BANNED

    Joined:
    Nov 8, 2008
    Messages:
    1,987
    Likes Received:
    2,198
    The same thing will happen to Facebook.

    Within 2-3 years, the company will be only a few hundred million dollars.
     
    • Thanks Thanks x 3
  10. dheer

    dheer Jr. VIP Jr. VIP Premium Member

    Joined:
    Jul 24, 2009
    Messages:
    2,443
    Likes Received:
    1,029
    Home Page:
    Yikes! this shows how big empires fall.. as far as I know at some point of time Google was reportedly set to buy it for $200 million.

    Investors 45M is gone. Big lesson to learn for IMers.
     
  11. blackberry

    blackberry Power Member

    Joined:
    Apr 26, 2009
    Messages:
    675
    Likes Received:
    218
    Occupation:
    Making money
    Location:
    Planet Earth
    And Betaworks also decided not to hire any other remaining DIGG staff (which was 15 i believe).

    I cannot blame them really, I wouldnt hire the staff that ran a company into the ground LOL
     
    • Thanks Thanks x 2
  12. LikeaSir

    LikeaSir Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 24, 2012
    Messages:
    128
    Likes Received:
    63
    Doubt this very much. Lol Facebook and its integration of web likes helped towards the downfall of digg. So no. I don't think this will ever happen to Facebook.
     
  13. unzero

    unzero Junior Member

    Joined:
    Apr 26, 2010
    Messages:
    186
    Likes Received:
    110
    Occupation:
    Internet Marketer
    Location:
    Yurop
    Agreed.

    There was a social website in our country which had like half of the nation signed-up. It was sold for around 5 million dollars (big thing for a country with population of 1,4 mil, ~400 000 active users), as soon as Orkut and Facebook came a long everybody left. The site is not worth maybe 50 - 100 k lol, that happened pretty much overnight.

    The creator was a smart guy to take the money.. now he is a leading start-up investor and doing super well.
     
  14. delaney

    delaney Newbie

    Joined:
    Aug 24, 2011
    Messages:
    34
    Likes Received:
    8
    Must be very disappointing for the guys who poured blood and sweat into getting Digg to where it was at it's peak. Certainly a lesson in selling up when the big boys come knocking.
     
  15. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,933
    • Thanks Thanks x 5
  16. aistee

    aistee Regular Member

    Joined:
    Jul 6, 2008
    Messages:
    358
    Likes Received:
    222
    Home Page:
    500k? That number doesn't really make a lot of sense, given that the site still gets enough traffic to make more than that in a year by just selling ads.
     
  17. swi7ch

    swi7ch Power Member

    Joined:
    May 13, 2012
    Messages:
    528
    Likes Received:
    144
    Reddit destroyed this b*tch.
     
  18. romeoicq

    romeoicq Junior Member

    Joined:
    Apr 25, 2009
    Messages:
    130
    Likes Received:
    44
    Occupation:
    Internet marketer
    Location:
    The Netherlands Europe
    Home Page:
    they say the same bout Myspace :eek:
     
  19. DanTe_0101

    DanTe_0101 Senior Member

    Joined:
    Mar 2, 2012
    Messages:
    863
    Likes Received:
    706
    Location:
    Fucksville
  20. rockong

    rockong Power Member

    Joined:
    Jan 19, 2012
    Messages:
    661
    Likes Received:
    283
    Occupation:
    Wealth advisor to internet marketers.
    Home Page:
    I would've taken that 200MM and ran with it