Digg CEO Matt Williams has announced on the company blog that social media pioneer Digg has been sold to Betaworks. Details of the deal were not disclosed. However, the Wall Street Journal is reporting that Digg, once valued at more than $160 million dollars, was sold for just $500,000. The reason for the price drop is likely due to Digg’s lack of valuable technology
Digg has raised $45 million in four rounds of venture funding since its formation in 2004. None of dig’s employees are to join Betaworks.
Betaworks founder John Borthwick, who is to be the CEO of the new Digg, said “betaworks has acquired the core assets of Digg. Digg is one of the great internet brands, and it has meant a great deal to millions of users over the years. It was a pioneer in community-driven news. We are turning Digg back into a startup. Low budget, small team, fast cycles.”
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