Yes, this is no typo. The price tag says $500,000.

The only thing Digg – once a trendsetter in everything online – is digging right now is its own grave.

During its peak, right after a funding round in 2008 the site was valued at $175M. So how do you go from $175M to $500K?

Digg experienced a lot of various problems along its way. First there was the problem with censorship, then fake accounts bumping up whatever submission they wished, and finally the re-launch, which did absolutely nothing for the site.

Even though Digg still gets around 16 million monthly visitors the site’s value has declined dramatically. The social news platform is no longer seen as the place to go to find out what’s popular online.

The new owner of Digg – the NYC-based startup Betaworks – is planning to include Digg in its platform News.me.

News.me sends users links to news that their followers on Twitter and Facebook are reading at the moment.

What’s interesting about News.me is that it hires only around 10 employees, so it’s no massive company that has some extraordinary plans for Digg. They just saw an opportunity and decided to make a move.

What This Means for Affiliates?

Simply that Digg is no longer relevant.

For years Digg was one of the main promotional methods for many sites online, not only affiliate sites. Not that long ago we were taught that we need to upload this and vote that, and as a result our site would see a massive stream of visitors.

No longer the case, considering the fact that Digg will become a part of News.me, as mentioned before.

Well okay, maybe the truth is not that harsh. You can never know how exactly Digg will be integrated into News.me. Maybe it will create some completely new methods of promotion that will be valuable for affiliates. Time will tell.

What’s your take on this? Isn’t Digg’s acquisition at such a low price a bit surprising?