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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 (opens in new tab) 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 (opens in new tab) writes on Read Write Web that 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.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.