Arrington: Digg Valued At $175 Million In Latest Funding

Digg’s latest funding round valued the company at “around $175 million” we’ve heard from a source with knowledge of the deal. The company raised nearly $29 million in the round, which was announced earlier this month.

The valuation seems about right for the company, which attracted 15.7 million worldwide visitors in August, up from 10.1 million a year ago (Comscore) (click here for Quantcast data, which shows much higher traffic). The financing was a second choice for Digg, which thought it was getting bought by Google for $200 million until a last minute glitch killed the deal. After it was clear the deal wasn’t going to happen, the company pursued a financing instead.