Digg acquired by Betaworks and John Borthwick Becomes CEO

Digg is divided in three separate parts and sold to Betaworks, Washington Post and LinkedIn for around $16 million.

Digg acquired

Since Kevin Rose Left Digg back in 2010 the company is sinking and looks like today it got destroyed completely. Today Betaworks bought the company for $500,000 and will turn it into News.me supporting site. Betaworks acquire only Digg.com domain name and hosted information but not the developers and the rest of the employees.

According to TechCrunch, the Washington Post paid $12 million for the Digg employees. The famous career social network, Linkedin paid around 4 million for 15 Digg patents including the click-to-vote system. So it means that Digg was sold for over $16 million but was divided in three separate parts by destroying the company completely.

I guess the best deal here is for the Betaworks since they got Digg.com domain name, code, date, infrastructure, and of course traffic. Digg while is sinking faster than Titanic it still has millions of monthly active users and loads of organic traffic. Adding more ads to the current Digg layout would get this investment back in few months. Of course there is a risk to damage user experience but since users are running away already this wouldn’t be the worst thing to do if money is a problem here.

Since I am a domain investor who acquires domain names from start-ups that were unable to become the next Facebook, Dropbox, Instagram or Google I know how amazing this deal was for Betaworks. Many companies would be willing to pay much more since the domain name itself is VERY valuable.

Digg.com will be turned into social news service similar to Flipboard and maybe it will be available not just for iOS and Android but for desktop computers as well. I haven’t used any of Betaworks services so I can’t comment on them but I hope they can create something like Flipboard but for desktop computers.

Digg was founded 7 years ago and the company had raised $45 million in funding from Marc Andreessen, LinkedIn founder Reid Hoffman, Greylock Partners and other famous Valley investors. Digg was one of the first Web 2.0 sites and was main news aggregator.

Betaworks is New York based company which owns several valuable web properties including news.me, bitly.com, bloglovin.com, chartbeat.com and socialflow.com. It has raised total of $27.5 million in funding by several large investors such as Intel Capita, New York Times, AOL Ventures and other.

This is the end of the Digg as we know it today but the website will be still accessible and will be news oriented but not like in the good old days.

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