Digg Hires Firm To Help With Potential Sale
This week has seven days in it so there must be some kind of Digg selling rumor – but this time there appears to actually be some meat. VentureBeat has learned that Digg has hired a private investment firm, Allen & Company to help them broker a sale. If true, it looks like Digg took Mike Arrington’s advice from last month:
I suggest they hire an investment banker to put together a proper pitch deck, approach the key buyers, and get a real bidding war going. That’s the way to sell a company for an absurd valuation.
The asking price is still said to be $300 million but Digg should probably try to control some of these rumors as it’s really starting to look like they’re becoming desperate to sell at this point. Perhaps Digg was simply waiting until they got their newest updates out the door to go full-steam ahead into sales-pitch mode, but most time you only hear about the shark hunting down the fish, not the other way around.
And then of course there is always the Revision3 wildcard. Would a Digg sale involve a stake in the online video channel? We may know in weeks, or we may know in months…