Digg up for sale for USD300m - Rumour

Social news site, Digg, is looking to sell itself for USD300m, having hired an investment bank to handle the sale, according to VentureBeat. The financial news site claims a reliable source confirmed the firm's plans, saying Digg is employing investment bank Allen & Company to negotiate a sale with potential buyers. This is the second time in the last two months there have been rumours that the US social news network, which claims over 20m users, is looking to sell up. Last month, Valleywag claimed that Digg was looking to sell itself for between USD300m and USD400m to a major unnamed media company. In the past two years, there has been plenty of speculation about the fate of Digg, with many rumours that it failed to sell itself on a number of occasions, including a time when it offered itself for between USD20m and USD30m to Yahoo! in May 2006. However, commentators think a USD300m valuation is not unreasonable and may attract interest for the firm, given that its ad deal with Microsoft guarantees the US news aggregator USD30m in revenue a year.