The rumored price very low price of $500,000 is likely false. In addition, Betaworks only bought the web site.
Social bookmarking site digg.com got bought by Betaworks. Betaworks is known mostly for the URL shortening service bit.ly. An early report on the WSJ said that the price was only $500,000. This sounds really very low. TechCrunch reports that the price was higher, but has not been officially announced. That is not all as the assets of digg got split. LinkedIn bought a couple patents fro about $4 million and The Washing Post bought the team for $12 million says another report on TechCrunch.
Digg.com has not managed to continue its early success it had a couple years ago. Back in 2006 Digg had a valuation of $60 million and founder Kevin Rose was the new poster child of Web 2.0.
What Betaworks will do with digg is not clear yet. There is room for another strong social bookmarking player besides reddit. Most of the sharing is happing though now in Twitter and Facebook.