Betaworks buys Digg for merely $500K

By on July 13, 2012
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Digg has now been acquired by Betaworks, and will now be known as news.me

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Once the most talked about social linking website, Digg has been acquired and will now known as news.me, reports SocialTimes. This is in sharp contrast to the days four years ago, when then CEO Kevin Rose tried to sell the company for two hundred million dollars. Now, a New York technology firm, Betaworks, has acquired it for only five hundred thousand dollars.

Before making the deal, Digg did consider other offers too, and some higher ones in fact. However, the consensus was that Betaworks had a better plan to revitalize Digg. The sharp decline in the user activity surfaced when Digg had updated to “Digg 2.0” platform. Nobody had guessed that the damage would be so much in regards to the insignificant sales numbers.

There are two reasons how their attempts to commercialize the site failed. Firstly, they ignored users’ concerns that had made it clear that they would leave the site if the front page was commercialized. Secondly, the revamped model was ineffective. Part of the new design was to let the companies design their own pages & feed the front page. This destabilized the democracy of the site. Users, who supported the new design, were confused if the site was functional when companies flooded the front page with their own links.

It seems the acute mistake on Digg’s part was not to listen to its users – they had lost when everything was in their hands.


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Comments
  • http://www.nystedt.org Magnus Nystedt

    It was Digg platform 4 that spawned all the uproar, was it not?

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