It was just announced that Digg.com has generated an additional $28.7 Million in VC funding. Digg is saying that this funding is going to be used for a large expansion plan over the next few months. Rumor is that Digg plans to almost double its staff to 150 as well as move to a bigger and better space in San Fransisco. I do believe this is all true, but what I am wondering is why?
The expansion represents the largest initiative in the company’s history and will include:
Digg has to have something up their selves, other than just an expansion. The traffic statistics are showing that the Digg.com traffic is plateauing, and possibly dropping off a bit. Also, a good bit of Digg these days is related to the 2008 US Presidential Election, so I am speculating that Digg will see a large drop off of traffic after the election is complete. I have heard some rumors that Digg might be working on a complex new feature that will better intertwine with Facebook’s Connect feature.
There must be something else in the works. What are your thoughts?