digglogo12.pngIt’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.

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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.”