With only a couple weeks left in the year, there's still time for one last Digg rumor -- and this one's a doozy. According to Venture Beat's "reliable source," Digg has hired Allen & Company to broker the social news site's $300 million sale. Although this may be the umpteenth iteration of the rumor, the addition of a private investment firm like Allen in Co. makes for quite the smoking gun.
What's compelling about this speculation is that Allen & Co.'s role isn't new to the story. In July Valleywag reported on Digg CEO Jay Adelson attending an exclusive Allen & Co. shindig geared towards uniting potential buyers and sellers. So, if one puts the pieces together (and includes details like Adelson's recent focus on Revision3), it's easy to see how the rumor could've gotten legs.
However, the real issue is whether Digg would be able to entice a buyer at that $300 million price point. As a whole, Digg is a shell of a site that manages to do well by promoting content from other sources. But even though the site is based on a solid (and incredibly simple) idea, it wouldn't take $300 million to replicate its functionality. If anything, the expense of trying to recreate its brand recognition and rabid fan base is why the site has such a hefty (rumored) asking price.
But would the brand be as respected and the fans as loyal if a huge media powerhouse took the reins? Sound off in the comments and give us your two cents!
[Via Venture Beat]
See Also:
