Alexis Ohanian
David A. Grogan | CNBC
DIGG content aggregator returns with the help of a unlikely partner: Reddit Co -founder and rival Alexis Ohanian.
Founder Ohanian and Digg Kevin Rose have acquired a platform for the undiscovered amount. The agreement is supported by the risk capital of True Ventures, where Rose is a partner and Ohanian’s seven seven six. Partnership was announced on Wednesday Video post On the X account of the X -IT company, on which Rose called a partnership “a team that would never have imagined 20 years ago.”
The DIGG was founded in 2004 and became prominent as the main way out for trendy news because it enabled users to evaluate stories. Rose did what became a infamous awful appearance on Businessweek’s 2006 cover as a child who “earned $ 60 million in 18 months”.
Company said in a statement That he wants to differ in the social media market “focusing on AI innovation intended to improve the user experience and the construction of an alternative aimed at man.” Digg said that he would also create a platform that “gives a priority of transparency, rewards human effort and encourages enriching discussions.”
Ohanian also teased the cooperation, They say x followers On Wednesday, he “worked on something new … but also old … but also very new” and “excited” that he is a partner with Rose.
At its peak in 2008, Digg was allegedly estimated at about $ 160 million. But the increase in Facebook and other social websites caused DIGG traffic to fall. Meanwhile, Reddit, who founded a year after the DIGG by Ohanian and current director Steve Huffman, appeared as a direct rival DIGG for forming communities around content types and allowing users of similar news about news.
In 2012, the Digg brand and the site bought a Tech incubator Betaworks for around $ 500,000.
Reddit continued its ascent, reporting nearly 102 million active users on The end of the fourth quarter. The place attracted a wide attention when it became the center of stock of meme supplies in 2020, as retail traders inflicted tremendous pain in hedge protection supplies, using sub -uddit known as Wallstreeetbets.
Reddit last went out to the New York Stock Exchange March $ 34 per share And he saw the supplies almost quinteture. The shares have increased by about 3% to date and have added 5.9% during the session on Wednesday.
Ohanian has switched to other projects from time stepped down from Reddit’s panels in 2020. He is currently a partner with billionaire Frank McCourt on offer for Tiktok after President Donald Trump extended the initial deadline For the company Chinese parents, sell the social media platform or face the ban.
Rose said in the post on X that he and Ohanian “dreamed of features that were not possible with yesterday’s technology.”
“The new @digg brings a great nostalgia, but we are not here to just renew the past or clonage the competitor,” he wrote.
– Ari Levy CNBC has contributed to this report.
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