Once Worth $200 Million, Digg Sells for $16 Million

Posted by Knowlton Thomas

Digg was founded in 2004. By 2008 it was worth $200 million, the price Google reportedly offered to buy it for. This week, the site sold for just $500,000.

The move strikes some similarities with Groupon. The daily deals site was offered $6 billion, also from Google, but refused. Groupon later went public at a valuation of $12 billion but, following various accounting controversies and questions surrounding the sustainability of its business model, its stock plunged and is now worth only $5 billion.

Digg published a blog post about "the next stage" of its future, saying that "Digg has always been a site built by the community, for the community." Matt Williams, the current CEO, wrote that "we couldn't be happier to announce that the next generation of Digg will live on with the team from Betaworks." Something tells us, that after selling a site worth less than 1% of what it once was, they could have been happier.

Update: TechCrunch is reporting that Betaworks did acquire Digg's leftover assets for around $500,000, but Digg also sold intellectual property (about 15 patents) to LinkedIn for up to $4 million and the Washington Post acquired the team for up to $12 million, bringing the total value of the Digg acquisition to roughly $16 million.

However, this remains just a fraction of the company's peak valuation, and even of the amount of funding it raised ($45 million).

Company:
Google
Website:
http://www.google.com
Location:
Waterloo, Ontario, Canada

Google's mission is to organize the world's information and make it universally accessible and useful. As a first step to fulfilling that mission, Google's founders Larry Page and Sergey Brin developed a new approach to online search that took root in a Stanford University dorm room and quickly spread to information seekers around the globe. Google is now widely recognized as the world's largest search engine --... more


blog comments powered by Disqus

Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more




Who's Hiring



Recent Comments

Powered by Disqus