Good news, MySpace: You’ve just been eclipsed as the biggest bust of the social media era.
Digg, only a couple years ago the most popular social news site around, has been sold to Betaworks for $500,000, reports The Wall Street Journal. Its last round of funding, in 2008, valued the company at $164 million.
That means that Digg managed to lose more than 99% of its value in
four years for its investors, a group that included Marc Andreesen, Reid Hoffman, Highland Capital Partners and Silicon Valley Bank. [Update: TechCrunch’s Alexia Tsotsis makes a good point:
When you add in the money Digg made for selling its engineers to the
Washington Post Co. and its patents to LinkedIn, you could argue that
the real sale price was $16 million.]