According to VentureBeat Digg has hired Allen & Company, a tiny but influential private investment firm, to help broker an acquisition deal. Digg’s reported asking price, a whopping $300 million. According to Valley Wag one possible suitor is media mogul Barry Diller’s IAC.

IAC, which had previously expressed interest but has backed off before. One reason for the renewed interest now: We hear that Barry Diller’s online conglomerate is secretly working with Digg on some kind of project — possibly a white-label version of Digg’s social news site.