There is a lot more to this deal, it wasn't a simple $500k outright purchase. It sounds like the shareholding was restructured with old investors and shareholders carrying over and betaworks taking up a large part of the company. employee options were probably wiped out, a lot of the old investment terms were probably restructured as well, with more recent money gaining favor
i'd think that the $500k is a token cash amount to settle who is leftover of old stock and debt holders/accounts after you move all the other shareholders over. Digg is definitely worth more than $500k (didn't 37signals want $400k just for their job board thing?), Betworks didn't buy the entire co for $500k and we don't know what the 'value' of the new company is, so the headlines are misleading
i'd think that the $500k is a token cash amount to settle who is leftover of old stock and debt holders/accounts after you move all the other shareholders over. Digg is definitely worth more than $500k (didn't 37signals want $400k just for their job board thing?), Betworks didn't buy the entire co for $500k and we don't know what the 'value' of the new company is, so the headlines are misleading