We hope everyone had a nice weekend and got out to enjoy the summer weather. Just in case you missed it, here is the top social media news from last week.
Digg.com joined the ranks of Friendster and Myspace as social media busts last week when it sold for $500,000 to Betaworks. The paltry $500,000 price tag for the formerly giant social news reader is in sharp juxtaposition to the 9 figure valuations Digg reached during its 2006 peak as well as the $40 million the company raised from venture capitalists.
The sale comes two years after a controversial site redesign that led to an exodus of even the most devoted Digg fans and one year after co-founder Kevin Rose left the company for greener pastures. Digg’s popularity has fallen dramatically since 2008 when the company topped 30 million visitors a month. The site currently hovers at 7 million monthly visitors.
Digg’s new owner, Betaworks, plans to put its News.me team to work on Digg.com with an entirely new site expected by August 1st. The relaunch aims to bring Digg back to its startup roots with a low budget and small team. Unlike Digg’s previous owners, Betaworks plans to take into consideration input from its users when building the new Digg.com in hopes that it can steal the title of top dog from the former scrappy underdog, Reddit.
Visit Digg.com on August 1st to see if the team at News.me was able to teach an old dog new tricks.
Facebook and Wal-Mart Meet
Silicon Valley met Arkansas this week when Facebook founder Mark Zuckerberg and COO Sheryl Sandberg met with Wal-Mart executives at Wal-Mart’s Bentonville, Arkansas headquarters. Analysts interpret the visit as a play by Facebook to open up new revenue streams through an increased involvement in online retail sales as well as a play by Wal-Mart to tap into Facebook’s 900 million users in an effort to compete with online retailer Amazon.com.
Finding additional sources of revenue outside of advertising could be crucial for Facebook if it wants to avoid going the way of former social media giant Myspace.
Have a great week and