[Techtaffy Newsdesk]

New York-based technology company Betaworks has acquired the core assets of community-driven news site Digg. Betaworks says it is turning Digg back into a startup, with a low budget, small team and fast cycles.

Betaworks is combining Digg with News.me, a Betaworks company with an iPad app, iPhone app and daily email that delivers stories shared by your friends on Facebook and Twitter. Betaworks will also be unveiling a new cloud-based version of Digg to complement the current News.me iPhone and iPad apps.

Betaworks founder John Borthwick will be the CEO of the new Digg. Matt Williams, the current CEO of Digg will be joining Andreessen Horowitz as Entrepreneur in Residence. The Digg engineering team had joined SocialCode, a subsidiary of The Washington Post Company in May this year.

To date, Digg has had over 350 million Diggs, 28 million story submissions and 40 million comments. Digg was launched seven years ago.