Alexis Ohanian
David A. Grogan CNBC
The Digg content aggregator returns with the help of an unlikely partner: Reddit Co -founder and rival Alexis Ohanian.
Kevin Rose, founder of Ohanian and Digg, purchased the platform for an undisclosed sum. The contract is supported by Venture Capital True Ventures, in which Rose is a partner, and seven seven Ohaniana Six. The partnership was announced on Wednesday in Post video To the company X, in which Rose called the partnership “a band he would never imagine 20 years ago.”
Digg was founded in 2004 and gained importance as the main sale for trends because it allowed users to evaluate stories. Rose was infamously appeared on the cover of Businessweek in 2006 as a kid who “earned $ 60 million in 18 months.”
Business he said in a communication This is to distinguish between the social media market by “focusing on AI innovations designed to increase the user's experience and build an alternative focused on man.” Digg said that he would also create a platform that “prioritizes transparency, rewards human efforts and supports enriching discussions.”
Ohanian also tone with cooperation, Speaking X followers On Wednesday, that “he worked on something new … but also old … but also very new” and is “excited” with cooperation with Rose.
At the summit in 2008, Digg was reportedly priced at around $ 160 million. But the growth of Facebook and other social pages caused a decrease in movement. Meanwhile, Reddit, who was founded a year after Digg by Ohanian and the current general director Steve Huffman, appeared as a direct rival to dig, creating communities around the types of content and allowing users to evaluate messages similarly.
In 2012, the Digg brand and website were taken over by the Betaworks technology incubator for around $ 500,000.
Reddit continued its entry by reporting almost 102 million active users in End of the fourth quarter. The site has gained widespread attention when the center of 2020 memes was mad, because retail traders had a huge pain on hedging funds returning actions using Subreddit known as WallStreetbets.
Reddit made public about the New York Stock Exchange March after $ 34 per share And he saw his wrestling almost Quintuple. Actions have so far increased by about 3% of the year and added 5.9% during Wednesday's session.
Ohanian has moved to other projects since he He stepped down from the Reddit board in 2020. Currently, he cooperates with the billionaire Frank McCourt in the offer of Tiktoku after President Donald Trump extended the initial date For the company's Chinese parenting to sell a social media platform or face a ban.
Rose said in the post on X that he and Ohanian “came up with functions that were not even possible with yesterday's technology.”
“New @digg brings great nostalgia, but we are not here to simply rebuild the past or clone a competitor,” he wrote.
– Ari Levy CNBC contributed to this report.
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