The Wall Street Journal is reporting that social news sharing website Digg was sold on Thursday to New York tech firm Betaworks for a small fraction of what it was once worth.
According to the Journal, under the deal, which Digg confirmed closed Thursday, Betaworks is paying $500,000 for Digg’s “brand, website and technology… for a company that raised $45 million from prominent investors.”
It’s hard to believe that Digg was once the poster child of user created content. Startups have three real assets: users, the team and potential. It appears that in the four years since Google’s $200M offer, Digg has lost all three.