What once enjoyed the position of being a favorite social news website, Digg has now been bought by New York-based technology company Betaworks. The acquisition of Digg took place following its declining popularity among users. A report from the Wall Street Journal revealed that Betaworks acquired Digg by paying $500,000. However, Matt Williams, Chief Executive of Digg said that the real figure is “significantly larger”.

Betaworks, the name behind popular app News.me, announced this deal in its blog post. The blog post clarified that it would take the company back to from where it started.

“We are turning Digg back into a startup,” read a post on Betaworks company blog. “Low budget, small team, fast cycles.”

Digg was going through low times for quite some time now. Therefore, the news of its acquisition came as no surprise. Digg had been facing tough competition from its rival website Reddit for a long time now. Despite indulging in various measures such as changing the site layout and reworking its business model, the company was not able to cope up. As a measure to improve it further, some of the major parts of the company were also sold off but led to no considerable results.

In its Blogpost, Betaworks has mentioned that it is planning to merge Digg’s core assets with its popular app News.me. This indicates that News.me will also earn a new face as a discovery and sharing site. However, at present the company is paying attention on the advertising side of social news with Digg Ads. This feature will allow users to endorse or roll out advertisements according to their convenience.

Digg’s Chief Executive Matt Williams said in one of his posts that this is the “next stage in Digg’s future”. Betaworks is going a step ahead with Digg with its first project where in it plans to make Digg more approachable by offering a cloud-based version of the same to match it with News.me’s app for iOS.

Despite Digg’s declining popularity, an All Things Digital report said that Digg still receives more than 16 million unique visitors per month and at the same time its Facebook app has nearly one million monthly active users.