Yeah Digg got sold for way less than it was valued for years ago. I remember a time when Digg was the spot to get your article so it got out to a large audience. Then through multiple revisions it became terrible.
The issue with dig was its product and customers. It’s product was the users and it’s customers were advertisers. So to make money Digg had to see the attention of its users. The users were what made the site worth it for advertisers.
Unfortunately the users of Dig didn’t like how they we being sold. That’s what killed Digg. No competitor came along and overwhelmed them, they made bad decisions about what their user wanted and paid the price for it.
Right now this is where I see Facebook (and to a lesser extent Twitter) headed. Every other week there is an update to Facebook that kills any semblance of our privacy. They [change our email][email], thereby showing how little they respect us.
While there is a strong following with Facebook that keeps putting up with it, there will be a tipping point when users will have had enough and they’ll leave. When that happens I doubt that Facebook will be able to stem the tide, after showing so little regard for us all this time.
[email]: http://www.businessinsider.com/facebook-changes-users-primary-email-addresses-2012-6 “Facebook Just Changes your Email without Telling You”