Betaworks to Pay $500,000 for Fallen Social Media Star Digg

Re:Betaworks to Pay $500,000 for Fallen Social Media Star Digg by brianlash on Thursday July 12, 2012 @04:55PM (#4236758)

That strikes me as shockingly low.

For context, KillerStartups bought the domain "startups.com" 4 years ago for $500,000. No IP, no brand recognition. The domain.

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Re:Betaworks to Pay $500,000 for Fallen Social Media Star Digg by twog on Thursday July 12, 2012 @05:16PM (#4236875)

Its a great deal for sure, but I would imagine betaworks is going to have some other expenses associated with Digg and factored that into the negotiations.

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Re:Betaworks to Pay $500,000 for Fallen Social Media Star Digg by larrys on Thursday July 12, 2012 @07:08PM (#4237330)

True. At the very least $500,000 will cover some of the costs associating with tying up loose ends when legally doing something like this instead of winding it down. May be employment contracts, leases, colo costs etc.

Either way it is a good deal by smell test standard.

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Re:Betaworks to Pay $500,000 for Fallen Social Media Star Digg by emp_ on Thursday July 12, 2012 @05:28PM (#4236946)

Sortfolio comes to mind as a recent example.

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Re:Betaworks to Pay $500,000 for Fallen Social Media Star Digg by carerra on Thursday July 12, 2012 @08:34PM (#4237607)

the valuation may be low but possibly Kevin took the offer with shares, so the new owned could allow Kevin to take more off the table in the future.

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