How the mighty have fallen – Digg, one of the pioneers in social media which was valued at over $160 million in the past, is now selling for approximately $500,000 – which is far less than 0.5% of its lofty peak valuation. Three persons who are familiar with the deal claim that New York technology development firm Betaworks is the buyer. The reason for purchasing Digg? To make an attempt in reviving this news-sharing site. $500,000 can be said to be a sham by some, where the company previously managed to raise a cool $45 million from prominent investors such as Facebook investor Greylock Partners, LinkedIn Inc. founder Reid Hoffman, and venture capitalist Marc Andreessen.

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I guess when it comes to the world of tech, it can be quite hard to tell the difference between a bubble and the real deal, and even if it were a bubble, it would be best to cash out when the going is good without letting emotion get in the way. Well, for $500,000, Betaworks will own a website that has a famous brand name, not to mention over 7 million eyes checking out the site each month as of May 2012, according to comScore’s results, of course.

I guess the popularity of sites like Facebook and Twitter have managed to “kill off” Digg effectively, but it would be interesting to see just how Digg’s redesign is going to position itself in the game once more.

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