Saturday, 14 July 2012

NYC-Based BetaWorks Buys Digg

By Liz Gannes at AllThingsD: 
The remaining assets of social news aggregator Digg — its site and brand — are being sold to Betaworks, the New York-based technology studio. Betaworks CEO John Borthwick will become CEO of the new Digg.

Once massive and influential, 7-year-old Digg has receded in recent times, but still has more than 16 million monthly unique visitors. It will be combined with Betaworks’ social news summary email service and app,

The Wall Street Journal is reporting that the deal was worth just $500,000, a massive decline in value, considering that the company had raised $45 million. Digg CEO Matt Williams disputed that figure, saying “the overall consideration is significantly larger,” and that it was a combination of cash and equity.

Williams, who was brought in nearly two years ago to replace founder Kevin Rose, is going to become an entrepreneur in residence at Andreessen Horowitz. In recent months, he has been working to sell the start-up, and had brokered a deal for its technology team with the Washington Post.

Read the full story here


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