Once, the pioneering social content aggregator, Digg.com that had its founder, Kevin Rose on the cover of ‘BusinessWeek,’ “How this kid made $ 60 million in 18 months,” was sold Thursday to etaworks, the company behind bit.ly, News.me, Chartbeat and other successful products.
The initial reports had $500,000 as the selling price, however, Matt Williams, the CEO of Digg.com, disputed the figure, claiming that the net worth of assets is ‘significantly larger.’
Betaworks’ founder, John Borthwick will become the new CEO of Digg, and has big plans for Digg. The company promises to turn Digg ‘back into a startup; Low budget, small teams and fast cycles.’ Digg was very popular among its users with a huge daily traffic. With the 4.0 update, Digg could not find a niche for itself as the content sharing became more popular on Twitter, Facebook and Reddit. The users were not happy with the new transition; hence they were driven away from the website.
On its blog, Betaworks posted that it will fold Digg into a News.me team, where the latter will have the management control of the website. The employees are to be let go as a result of this acquisition. Betaworks further reported that it will soon unveil ‘new cloud-based version of Digg’ hat will favor News.me iphone and ipad applications.
According to Digg’s outgoing CEO Matt Williams, his team “considered many options of where Digg could go, and frankly many of them could not live up to the reason Digg was invented in the first place — to discover the best stuff on the web. We wanted to find a way to take Digg back to its startup roots.” Betaworks says it’s planning to “build Digg for 2012.”
Back in 2008, Google was interested in acquiring the website for $200 million but later backed out. Although the cost has not been officially revealed but the estimated amount of $500,000 seems illogical as the website still gets traffic that is more than the estimated amount in a year by just selling ads. The website had to face further loss in the credibility when half of its ‘technical staff’ migrated to Washington Post’s Social Web Project.
So where does this leave the current dig users? Well most will migrate to Reddit, if they still have not or to facebook and twitter.
This material may not be published, broadcast, rewritten, redistributed or derived from. Unless otherwise stated, all content is copyrighted © Copyright 2013 AAJ NEWS. All rights reserved.