Digg, the social networking site that gathers blog posts, social bookmarks and web 2.0 content, has raised another $8.5 million from two of its existing investors, Greylock Partners and Omidyar Network. So, why it is news in the blogosphere?

Red Herring reports that Digg will continue to operate as an independent news site. It is not going to be owned by News Corp, as of now. Earlier, News Corp has discussed with Digg to acquire the site for about $200 million. Digg has now good financial back-up. During the last fall, it has got nearly $2.8 million from Greylock Partners and Omidyar Network.

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