Betaworks to Pay $500,000 for Fallen Social Media Star Digg:
Under the deal, which Digg confirmed closed Thursday, Betaworks is buying the Digg brand, website and technology. The price was just $500,000, three people familiar with the matter said—a pittance for a company that raised $45 million from prominent investors including LinkedIn founder Reid Hoffman and Marc Andreessen.
Anyone remember Digg and thinking a mere $500k US was a steal? Someone, namely the investors, lost a lot of money, total venture funding: $45M US.
Update:
According to AllThingsD the number was significantly higher than $500k:
Digg CEO Matt Williams disputed that figure, saying “the overall consideration is significantly larger,†and that it was a combination of cash and equity in Betaworks.