Once a Social Media Star, Digg Sells for $500,000

By Joseph Walker And Spencer E. Ante:

Digg Inc., a social-media pioneer once valued at more than $160 million, is selling for the deeply discounted price of about $500,000, three people familiar with the matter said.

The buyer is New York technology development firm Betaworks, which is attempting to revive a news-sharing site that was outmaneuvered by Facebook Inc. FB -0.52% and Twitter Inc.

Digg founder Kevin Rose landed on the cover of BusinessWeek in 2006.

Digg confirmed Thursday it sold its brand, website and technology to Betaworks. The price is a pittance for a company that raised $45 million from prominent investors including Facebook investor Greylock Partners, LinkedIn Inc. LNKD +3.52% founder Reid Hoffman, and venture capitalist Marc Andreessen… Read more

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