Digg, once considered a top social media site, was sold
last week to Betaworks
for $500,000. $500,000 is a fraction of what Digg was thought to be worth in its heyday. Digg raised $29 million on a $164 million valuation in late 2008.
The rise of Facebook and Twitter probably hurt Digg. There is also
the argument that Reddit killed Digg. Another argument
is that Digg killed itself.
The big question is if Digg's demise means anything for current highly valued social media sites today. Facebook has already seen its U.S. growth rate turn negative
. Facebook has a far larger user base than Digg ever did, but an exodus of users can spark a turning point. Current social medial leaders, like Facebook and Twitter, will also want to keep a close eye on spam and powerful users. Digg was often locked in a battle
with its top users for control of the its own homepage.
Meanwhile, Betaworks, which owns News.me and Bitly, says
it plans to turn Digg back into a startup. They plan to "take Digg back to its essence: the best place to find, read and share the stories the internet is talking about."