Comment by soup10

Yep, (they paid a lot more than that) and it's probably worth it imo. Half the battle with web 2.0 sites is getting enough users to get the ball rolling. Digg already has that, and all they have to do is "reinvent" themselves with a great design and a focus on some set of users that aren't being well served by other community websites. Personally I'd try to target groups that reddit alienates.