Digg, a popular news ranking website, is running into financial problems once again. Less than six months after laying off 10% of their workforce, they are now giving pink slips to another 37% of their employees; which amounts to 25 employees based on CNET’s report.
PC World: Once a high-flying web property, Digg was sold Thursday for a paltry $500,000. The sale to Betaworks, maker of an iOS news aggregator app and an URL clipper, Bit.ly, was a fraction of the $45 million lavished on the venture by Silicon Valley money lenders since its founding in 2004. Why did Digg fall on hard times? Here are seven reasons.
Mashable: Undaunted by Digg’s disastrous 2010 redesign, Fark, the aggregation site known for its influence and breadth of quirky news, is getting a facelift, according to the site’s founder, however there’s a chance that he might be joking.
TechDeville: Digg just confirmed the news through an official blog post that they’ve been sold to Betaworks for just $500,000.
A shame... I lost faith in Digg when they did nothing to curb the power users. While their downfall really came with Version 4, they were already losing quite a bit of traffic long before the switch.
Very true The Digg 4 was really complex and the value of power users was diminished . I guess the algo failed to attract users .
They made the mistake to use Auto RSS from the start and gave big sites the advantage of pretesting the site before others...so the equity thing they marketed for v4 was bullcrap.
I found Digg to be pretty helpful, very unfortunate to hear people will be losing their jobs.
It doesn't surprise me. The Digg.com site re-design sucks and I rarely find myself using it.
Hmm I heard a guy say that with Digg coming to a death, so will the Internet... shows how irrelevant Digg really was. The internet is still here!