by Brian Solis
Shot at Tim Ferriss’ Worlds Collide party last month
VentureBeat is reporting that Digg has hired Allen & Company, an influential private investment firm, to navigate the possibilities of brokering a deal. According to a source, Eric Eldon believes the asking price is still $300 million.
The “300 million” rumor was sparked last month and Digg continues to receive guidance that it should follow through this time. Although, I’m not sure at how the value is currently viewed on the streets. There are reports that Digg tried to sell itself for $20-$30 million in 2006. According to TechCrunch, by the end of 2006, the number jumped to $150 million and the company wound up turning down soft offers in the $100 million range.
I think that Digg is the real deal and the time is right for an acquisition. There are some highly viable competitors hitting the scene and getting traction. In order for Digg to hit mass appeal, it needs the infusion of cash, connections, and vision.
After tracking referring sources to various sites in my experiments over the last couple of years, Digg is only growing in influence and reach, outperforming some of the biggest names in the business.