A rep for SugarDVD.com tells TMZ that they were approached by a third party claiming to have the tape -- allegedly featuring Conrad with her "Laguna Beach" and "The Hills" co-star Jason Wahler. The rep says the company offered $500,000 for the latest star skin flick -- sight unseen. SugarDVD.com reportedly called Wahler's manager and made him the same offer. According to the SugarDVD source, Wahler's manager would neither confirm nor deny the that there was a tape. News of the tape's possible existence was first reported by Perez Hilton.
Mike Esterman, who reps several "Laguna Beach" stars, confirmed to TMZ that he was contacted, but passed the offer on to Wahler's camp.
A rep from Vivid Entertainment, the company that just released the Kim Kardashian sex tape, tells TMZ his company has not been contacted, but would certainly consider making an offer.
Conrad fired back today with a blog on her website that reads, "Jason and I would like to make it clear that we did not make a tape with us having sex. Jason and I are both shocked and hurt that people would say such horrible things about us. I can't believe that somebody would go to such great lengths to try to damage my reputation."
Reps for Conrad could not be reached. We couldn't find Wahler.