Source: Digg hires bank, hoping to sell for $300 million or more

It’s been a little more than a month since the last rumors surfaced about social news site Digg trying to sell itself for at least $300 million.

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.

Allen & Company traditionally uses the event to do what it terms “direct research” on potential buyers and sellers, then inserts itself as banker.

For more on the history of Digg rumors (including a suggestiong to “Hire A Banker. Sell This Thing, Already”), see Techcrunch’s post from last month.

We asked Digg founder Kevin Rose about a potential sale, and Allen & Company’s involvement. He told us, unsurprisingly, that “we never comment on things related to acquisitions.”

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Companies: Allen & Company, co:Digg

People: Jay Adelson, Kevin Rose