Shalom Life | April 27, 2015

Digg, Once Valued at $200 Million, Sold for $500,000

Kevin Rose's once mighty startup purchased with plans to fold

By: David Shear

Published: July 12th, 2012 in Business » World

Digg, Once Valued at $200 Million, Sold for $500,000

Digg, the one time social sharing darling, with an estimated value of over $200 million in 2008, has been sold for a paltry $500,000 to New York based Betaworks.

The cautionary tale of Digg is not an uncommon one, and should be of concern to investors looking to get into the social media scene.

As of a couple of years ago, Digg was considered one of the hottest startups, founded by member of the tribe, Kevin Rose, who adorned every every magazine cover from Business Week, to Inc. and many others, and was one of the wonderboys of Silicon Valley. But much like the story of MySpace, which was started by a fellow Jews, Tom Anderson and Brad Greenspan along with Chris DeWolfe, the final chapter of Digg was not a pleasant one.

MySpace, at one time the most popular social media site in the world, and the most visited site on the internet, even surpassing Google, sold to News Corp in July 2005 for $580 million. From there, the progress of the site could be charted as a straight downhill slope, eventually leading to the sale of the company to Specific Media LLC and Justin Timberlake for $35 million in June, 2011.

Digg, much like other businesses in the industry that show some hope, raised massive amounts of money from investors, over $45 million since launching in 2004. The company is now expected to be folded into News.me.

In recent years Digg has run into serious operational trouble, which had many people foreseeing its eventual downfall. There were various relaunches which were met with mixed to poor reception, plummeting traffic, lost revenue and the eventual step-down of Rose, who left the company in March 2011.

How many more overvalued-internet-darlings-to-bankrupt-disasters will it take for investors to re-examine the way they look at these businesses before investing? Will the eventual collapse of Twitter, Pinterest or another giant be the wakeup call needed?

Poland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis Poland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis TrendingAshely Madison To Make A $200 Million IPO Ashely Madison To Make A $200 Million IPO TrendingUber Is Offering Israelis Free Hummus for Independence Day Uber Is Offering Israelis Free Hummus for Independence Day Trending
 

Yes, There's A Grateful Dead Album Entirely in Hebrew

April 24, 2015 | By Caitlin Marceau
Yes, There's A Grateful Dead Album Entirely in Hebrew

Released by Sagol 59 and Ami Yaris, "The Promised Land" features songs from the revered jam band beautifully translated into Hebrew

Read More

Ban Ki-Moon Eats Shakshuka On Israel Independence Day

April 24, 2015 | By Caitlin Marceau
Ban Ki-Moon Eats Shakshuka On Israel Independence Day

An exploration into Israeli food, and maybe the first step towards peace, Ban Ki-Moon tries shakshuka for the first time

Read More

WATCH: Tel Aviv Zookeeper Captures Awesome Footage of Animals Drinking

April 24, 2015 | By Maya Yarowsky, NoCamels
WATCH: Tel Aviv Zookeeper Captures Awesome Footage of Animals Drinking

Elad Hershkowitz captured the unique footage by placing a GoPro camera at the bottom of animals' water troughs to get a closer look at how giraffes, lions, rhinos and lemurs relieve their parched pallets

Read More

First Nations Actors Storm Off the Set of Adam Sandler's Western Spoof

April 24, 2015 | By Caitlin Marceau
First Nations Actors Storm Off the Set of Adam Sandler's Western Spoof

Despite concerns raised by actors on the set, and even following a walkout by cast, Netflix and Sandler stand by the 'The Ridiculous Six'

Read More

Poland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis

April 24, 2015 | By Caitlin Marceau
Poland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis

A card which refers to their country as "Nazi Poland" during the second World War has been deemed offensive and demeaning to Poland

Read More

Former New York State Governor and Possible Presidential Candidate Has Longstanding Jewish Ties

April 24, 2015 | By Jacob Kamaras, JNS.org
Former New York State Governor and Possible Presidential Candidate Has Longstanding Jewish Ties

George Pataki has a strong history with Jewish voters for a Republican

Read More

Israel: One Of The Happiest Countries On Earth

April 24, 2015 | By Caitlin Marceau
Israel: One Of The Happiest Countries On Earth

Israel takes the 11th spot on the UN's annual happiness report, coming out on top of countries like the U.S. and U.K.

Read More

Netanyahu Condemns Ultra Orthodox Jewish Attackers of IDF Officer

April 24, 2015 | By Kobi Nachshoni
Netanyahu Condemns Ultra Orthodox Jewish Attackers of IDF Officer

'They are lawbreakers. Service in the IDF is a source of pride,' the Israeli PM stated

Read More

More Headlines