How the mighty have fallen. The social sharing site Digg has sold for just $500,000 to New York startup incubator Betaworks.

The small selling price just goes to show how quickly fortunes can turn for even the hottest web startups. According to The Wall Street Journal, Digg took more than $45 million from investors since launching in 2004.

On its blog, Betaworks says it is going to fold Digg into the News.me team.

The company also vows that it is going to “turn Digg back into a startup. Low budget, small team, fast cycles.”

Since the release of Digg v4, dubbed “the new Digg” in the summer of 2010, the once-hot company has met with a series of challenges. Poor reception led to plummeting traffic, changes in management and layoffs. Digg co-founder Kevin Rose left the company in March 2011.
UPDATE :
http://techcrunch.com/2012/07/12/bet...acquires-digg/

In 2008, Google was reportedly interested in acquiring Digg for around $200 million, but walked away from the deal. That deal would have been a nice return for the service’s investors. In total, Digg raised $45 million from a number of SiliconValley most prominent investors since its launch. The last funding round – a $5 million Series D round – closed exactly a year ago. At that time, the site was still valued at around $35 million and TechCrunch founder Michael Arrington reported that without that round, the company would have had only had about 6 months of runway left before it would have had to close its doors.
Heath Reviewed by Heath on . Digg Sells For $500,000 http://mashable.com/2012/07/12/digg-sold-for-500000/ http://7.mshcdn.com/wp-content/uploads/2012/07/Business-Week-August-2006-digg-640.jpg UPDATE : http://techcrunch.com/2012/07/12/betaworks-acquires-digg/ Rating: 5