Remember when Digg.com was estimated by some analysts to be worth upwards of $200 million? Those days are long gone as New York incubator startup Betaworks announced on Thursday that it has purchased Digg for a measly $500,000.
Since launching in 2004 Digg has received more than $45 million in investor funds
On it’s blow Betaworks says Digg will fold into the News.me team. Betaworks also promises to “turn Digg back into a startup. Low budget, small team, fast cycles.”
Digg was once hailed as the future of the internet until Digg v4 was widely panned by critics and the sites most loyal users as a complete failure that confused some users and took away other favorite features used by devoted Diggers. After the release of V4 the website watched traffic plunge, lost much of its management structure and was forced to lay off half its staff. read more
Digg CEO Matt Williams practically went into hiding after the horrible release of Digg Version 4, but he’s emerged from that PR coma to say “sorry that we disappointed our Digg community in the process.” Williams has also promised to return popular features that users were angry to see leave.
The most requested feature for return the “bury” button will return as will profile data from earlier versions of the Digg system. Williams has also announced that the “Top News” algorithm will be updated.
Digg is stuck in a sticky situation, on the one hand, much of their “network shares” have relied on “legacy” users, who in many cases are holdovers since the company beta version of the website, while other new users expect to find new features that match a more streamlined social media system for 2010. Perhaps a “legacy” button which would allow users to switch to the type of profile they choose would be a better decision.
Williams has promised in his press statement to make things better by taking various approaches:
“Our top priority is to make Digg as good as it used to be. Then we plan to make it even better, through innovations in both Top News and My News.” read more