Digg, a site where users can discover and share content from anywhere on the Internet, was bought by Betaworks, a technology incubator located in New York, for a reported $500,000. None of Digg’s current employees will be joining Betaworks, whose CEO, John Borthwick, will serves as Digg’s CEO as well. This marks the end of a tumultuous couple of years for Digg, which was once courted by big-name investors and tech companies for Google. At the heights of its popularity, negotiations for deals were reported to be within the $100-$200 million range.
“Digg and Myspace serve as cautionary tales for hot startups,” says Justin Maas, social media account manager at fishbat. “Once leaders in their respective areas, there were unable to adapt to the changing conditions.” Digg will be incorporated into Betaworks’ company News.me, which allows users to receive stories shared by their Facebook and Twitter contacts.