Sunday, July 15, 2012

News sharing websites Digg sold for $500 000

Digg was once valued at more than $160 million but is now selling at only $500 000.

Digg has been bought by " Betaworks" a technology firm based in New York with the expectation of reviving the news-sharing website after it was outmaneuvered by the 2 giants social network Facebook and Twitter.

Digg confirmed the transaction with Betawork last thursday, the price is a bargain for a firm that had raised more than $45 million from investors such as Greylock Partners, Linkedin.
This is an example of how bullish social media valuation can be and will make us think twice before buying shares of another social network..

Digg recceived  higher offers, but Betaworks' plan seemed to be the best as it will keep half of Digg's staffs, mostly engineers and focus on promoting Digg brand image

Digg founder was on the cover of the business week magazine in 2006 witht  the title " how this kid made $60 million in 18 months" and was known at that time as one of the most promising start up from the Silicon Valley.
Google had offered once $200 million but the deal was never sealed, I can guess the disappointment of the founded to not have taken this opportunity, thats like 400 times the price it was sold for last week.


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