News aggregator Digg may be looking to raise a Series C funding round after failing to find a buyer, reports Mashable quoting unnamed sources. The tech blog says that Digg has failed to attract a satisfactory takeover offer and has thus opted for another round of financing. This would top up the USD10.3m raised in two rounds in 2005 and 2006. The new capital would likely be used to expand Digg’s functionality and tie new partnerships with other social media sites.
Reports that Digg was trying to sell itself appeared on the web last autumn, when Venture Beat wrote that the startup was looking for a takeover price between USD300m and USD400m and hired investment bank Allen & Company to negotiate the deal.
Digg founder Kevin Rose and CEO Jay Adelson will hold a webcast today, May 13, officially to discuss issues that involve the Digg community. Mashable suggests that the two executives might use the event to announce the new funding round.