Kevin Rose and Alexis Ohanian Acquire Digg

Digg Reclaimed: A Return to its Roots

A significant development in the world of social news aggregation has occurred. Digg, a pioneering platform from the early days of the web, has been reacquired by its original founder, Kevin Rose.

Adding to this noteworthy event, Alexis Ohanian, the co-founder of Reddit, is joining Rose as a co-owner. This pairing brings together two influential figures from the history of online communities.

A History of Competition and Change

Digg and Reddit were once prominent competitors, both emerging in the early 2000s as platforms for social news. They followed comparable paths for a time, experiencing multiple ownership changes and strategic shifts.

However, Reddit has demonstrated remarkable resilience. The platform successfully completed an initial public offering (IPO) last year, and continues to see consistent user growth.

Digg's Evolving Ownership

Digg’s journey hasn’t been as straightforward. In 2012, the company underwent a restructuring and was divided, with portions being sold to Betaworks.

Subsequently, LinkedIn and the Washington Post acquired specific assets from Digg. Later, a strategic investment was secured from Gannett, the owner of USA Today.

Ultimately, a majority stake in Digg was purchased by BuySellAds in 2018, marking another chapter in the platform’s evolution. This recent acquisition by Kevin Rose signifies a full-circle moment for the iconic web aggregator.

Key Takeaway: The return of Digg to its original founder, alongside the involvement of Reddit’s co-founder, represents a fascinating development in the landscape of social news.

A Renewed Focus for Digg

Although Digg never achieved the same level of prominence as Reddit, Rose and Ohanian are now collaborating to “revitalize” the platform. Their aim is to reinstate a “fresh vision” that captures the essence of discovery and fosters a genuine community, reminiscent of the early internet’s engaging atmosphere, according to the revamped organization.

Rose explains that he received multiple offers to purchase Digg over the years, but the timing never felt appropriate. Recently, upon learning it was available for sale, he initiated discussions with colleagues, including Ev Williams, co-founder of Twitter and Medium. He also reached out to Ohanian, whom he previously considered a competitor but with whom he has developed a closer relationship, bonded by their shared experience as “girl dads.”

Rose recounts his initial conversation with Ohanian regarding Digg: “I began by asking if he was interested in hearing something unexpected, and we started brainstorming. I quickly realized the extent of unrealized ideas on his side – concepts he hadn’t yet implemented – and I felt similarly.”

The timing is driven by a confluence of factors, according to Rose. He believes the current social media environment is characterized by toxicity, disorder, and the spread of misinformation, issues that artificial intelligence is uniquely positioned to address. He highlights the readily available AI tools, stating that response times under 200 milliseconds are achievable for comments under 300 characters, with sentiment analysis across over 20 categories, including violence, toxicity, and hate speech.

Furthermore, Rose asserts that “We are at a pivotal moment with AI and its capabilities.” He suggests that significant shifts necessitate a fundamental reassessment of business principles and a willingness to rebuild from the ground up, a process he, Ohanian, and Justin Mezzell – a long-term Rose collaborator and Digg’s current CEO – will undertake.

Ohanian reinforces Rose’s perspective in a press statement, emphasizing that “Thriving online communities require a balance between technological innovation and human oversight.” He states their intention is to restore this balance with the new Digg, believing that AI should handle routine tasks while humans concentrate on fostering genuine connections.

Ohanian’s involvement with Reddit has been intermittent. He initially departed in 2009, rejoined as chairman in 2014, and ultimately resigned from the board in 2020.

Both Rose and Ohanian have actively invested in various companies, both independently and through venture capital firms. Notably, Ohanian recently participated in Frank McCourt’s bid to acquire TikTok’s U.S. operations.

Their investment paths have now converged, with True Ventures, where Rose serves as a general partner, and Ohanian’s firm, Seven Seven Six, both contributing to Digg’s funding.

While Mezzell, an experienced product designer, will manage the company’s daily operations, Rose will assume the role of chairperson and advisor, and Ohanian will join the board of directors.

The redesigned Digg platform is scheduled for launch shortly. Invitations will be distributed in the coming weeks, and a landing page is currently available for email registration.

Rose explains the initial access process: “A first-come, first-served system will be implemented for username selection.” He assures users that they will not be subjected to unsolicited marketing: “We are committed to respecting your privacy. Providing your email address will only notify you when the platform is live, allowing you to claim a username and provide feedback.”

Rose cautions against expecting immediate, dramatic changes. He emphasizes that successful turnarounds require time.

“Our long-term vision, within a year or a year and a half, is to create a Digg experience akin to Figma’s evolution – a dynamic, free-form interface unlike anything currently available,” Rose states. “It will move beyond the limitations of traditional forums.”

A more detailed discussion with Rose regarding Digg, his relationship with Ohanian, and valuable lessons learned as a founder can be found in our latest podcast episode covering this significant news.