In August 2006, less than two years after its launch, the social content aggregation site Digg was an Internet darling. That month, founder Kevin Rose grinned from the cover ofBusinessWeek, sporting a backwards baseball cap and headphones and giving two thumbs up with the headline, “How This Kid Made $60 Million in 18 Months”—a nod to what the site was then thought to be worth. Digg, which let users post content that could then be voted up or down by others, was flying high.
Last week, after more than 350 million up-votes, or “Diggs,” the site announced it was acquired by technology investment and development company Betaworks. The price, according to aWall Street Journal report, was $500,000—a fraction of the over $160 million the site was thought to be worth at one point in 2008 and of the $45 million investors have poured into the company over the years.