Digg on the Block?VentureBeat reports that Digg has hired Allen & Company to help it sell itself.
Has Digg waited too long to get its $300 million? Probably not. Tech bloggers have been focusing much more on the social networking big dogs lately but Digg still has tons of traffic. Digg has lost some of its appeal because of competition but someone will likely pay the big bucks for all this traffic.A reliable source just confirmed the company's plans, noting the company has hired Allen & Company, a tiny but influential private investment firm, to help broker a deal. The asking price is still $300 million, the source said.
This will come as no surprise. Rumors of a sale have been rampant for months, although until now we hear co-founder Jay Adelson has been trying to muster up interest in a sale. This is the first time Digg has hired a bank to shop the deal, we're told.
Valleywag reported the $300 million rumor last month. Separately, it reported Digg chief executive Jay Adelson's attendance at Allen & Company's annual Sun Valley, Idaho get-together of the rich and famous, noting the company might be looking to find a buyer among one of the many media company executives in attendance.
Who would want it? Mashable is betting on a big newspaper conglomerate like "Gannett, Tribune, or Cox Newspapers." Valleywag mentions Barry Diller's IAC. Matthew Ingram suggests that Google may buy Digg - you can ridicule (or praise) him for it here. Microsoft is said to be selling at least some of the ads on Digg so maybe that's something Google would want to takeover. Microsoft may also want to buy Digg to keep Google away from it.
Digg itself has a lot of comments about a potential sale. There doesn't seem to be quite as much interest in blogging this particular rumor. Some of the other rumors this year were very heavily blogged. Maybe everyone is just about rumored out for 2007.
Posted on December 18, 2007