Rumor: Digg.com to Sell for $300 million

Valleywag is reporting that a "major media player" is ready to acquire the social news site, Digg.com for about $300 million to $400 million. At this point, this news is nothing more than a rumor. But interestingly, Digg CEO told Webware that he or his company won’t comment on this rumor, which makes us all feel that something is really cooking!

Valleywag editor, Owen Thomas continued and said that his source ruled out all major internet players, which means not Microsoft, not Google, not Yahoo and CBS has taken itself out. He speculates that it might be New York Times, or the Washington Post. Here’s an excerpt from his post the Valleywag:

"Digg CEO Jay Adelson gave me the standard noncomment about "rumors and speculation." But given his transcontinental commute from New York to San Francisco, I wouldn’t be surprised if he’d be glad to put his company up for sale. For founder Kevin Rose, a sale would be more emotional. He’d have to be comfortable with whoever buys the company, since he’d likely stay involved."

I began wondering why a major news company would be willing to shell out $300 million on Digg. But then I came across this stat which suggests that Digg makes about $800,000 each month under current traffic level. Let’s keep our fingers crossed!