Content aggregator Digg is poised for a revival, thanks to a surprising collaboration between Reddit co-founder Alexis Ohanian and original Digg founder Kevin Rose. The duo has acquired the platform in a deal whose financial details remain undisclosed. This partnership also enjoys the backing of venture capital firms, including True Ventures, where Rose holds a partner position, as well as Ohanian’s venture firm, Seven Seven Six. The announcement was shared via a video post on Digg’s X account, where Rose expressed admiration for a partnership he could have never envisioned two decades ago.
History and Evolution of Digg
Established in 2004, Digg gained notoriety as a leading platform for trending news stories, allowing users to upvote content. Kevin Rose famously featured on the cover of Businessweek in 2006, celebrated as a young entrepreneur who earned $60 million in just 18 months.
According to a recent press release, the new Digg aims to distinguish itself in the competitive social media landscape by concentrating on artificial intelligence innovations that enhance user experiences. The revitalized platform plans to prioritize transparency, reward human contributions, and cultivate enriching discussions.
Ohanian hinted at the groundbreaking nature of the collaboration, teasing his followers with the idea of “something new… but also old… and very new.” He expressed his excitement about joining forces with Rose to breathe new life into Digg.
The Decline and Competition
At its zenith in 2008, Digg was valued at around $160 million. However, competition from Facebook and other social networks led to a steep decline in its user base. Meanwhile, Reddit, launched a year later by Ohanian and current CEO Steve Huffman, began to thrive by cultivating communities around specific content genres and offering users similar rating capabilities for news articles.
In 2012, Digg was acquired by tech incubator Betaworks for approximately $500,000, marking a significant decline from its original valuation.
Today, Reddit has experienced robust growth, with nearly 102 million daily active users reported at the end of the fourth quarter. The platform gained significant recognition during the 2020 meme stock phenomenon, with retail traders on the Wallstreetbets subreddit taking down hedge funds by rallying around specific stocks.
Reddit entered the public market on the New York Stock Exchange last March, launching at $34 per share and seeing its stock price nearly quintuple since then. Shares have appreciated about 3% year-to-date, gaining 5.9% in the latest trading session.
Future Aspirations
Since stepping down from Reddit’s board in 2020, Ohanian has been involved in various projects, including a joint venture with billionaire Frank McCourt to pursue TikTok. Their efforts coincide with a looming deadline for the Chinese parent company ByteDance to divest from the application to avoid a potential ban.
Rose shared his enthusiasm about the new Digg initiative on X, stating that he and Ohanian had conceptualized features that were previously unattainable due to technological limitations.
“The new @digg brings a wave of nostalgia, but our aim is not just to recreate what once existed or mimic a competitor,” he emphasized.
This partnership represents not only a revival of a beloved platform but also a fresh approach to social media, focusing on innovation and user engagement.
