[brianlash]

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.

[twog]

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.

[larrys]

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.

[emp_]

Sortfolio comes to mind as a recent example.

[carerra]

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.