Digg, a seller for USD 300 million

Investment bank Allen & Company has reportedly been hired by Social News Voting website, Digg. A&C have been involved in a number of acquisitions in the past: Seagram and Universal Studios, Hasbro and Galoob Toys, and Disney and Capital Cities/ABC.

The rumour of a Digg acquisition first started last year and it seems that its founders have finally decided to call it a day after a notable downturn in the US economy coupled with a credit crunch, which means that it would be wise to exit the market.

Digg would be the latest acquisition in a market where Newsvine and Reddit have been acquired (by MSNBC and Condé Nast respectively) and where others like Myspace, Google and BBC are trying to embed social voting de facto.

But Digg could also be looking to sell part of the startup in order to fund future expansion and grow up substantially (and sell for much more afterwards).

Muhammad Saleem writes on Read Write Web that Digg.com has had a user survey which probed the userbase, trying to find out what new features they would like to implement in a near future.