According to the technology blog, TechCrunch, Google and Digg have signed a letter of intent and they are just weeks away from finalizing a $200 million USD acquisition deal, under which Digg will be incorporated directly into the existing Google News Service.
These assumptions might be true because of the obvious resemblance between Digg's voting system and one of Google's experiments.
On the other hand, Microsoft is also trying to acquire Digg, but for a less price as compared to Google. Digg has been earning $11.3 million in venture capital from the 3 year deal with Microsoft, and if Digg decides to accept Google's business proposal, then the 3 year deal with Microsoft will expire.
Microsoft also doesn’t want to lose on this acquisition after losing from Yahoo Inc. when the latter signed a lucrative Search-Advertising deal with Google.
Digg was started in 2004 as a site that allows people to submit links, stories, votes and comments. Digg is on the top in this field and has a community of over 26 million users.