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Digg sold for just $500,000

Digg, a social-media pioneer once valued at more than $160m, has sold its brand, website and technology for the deeply discounted price of around $500,000, The Wall Street Journal has reported, citing three people familiar with the matter. The buyer is New York technology development firm Betaworks, which is attempting to revive a news-sharing site that was outmanoeuvred by Facebook and Twitter. Digg received higher offers from bidders that included technology and publishing companies and start-ups but ultimately decided Betaworks had the best plan for reviving its brand, these people said. The price is a pittance for a company that raised $45m from prominent investors including Facebook investor Greylock Partners, LinkedIn founder Reid Hoffman, and venture capitalist Marc Andreessen.