It looks like Google may be in final negotiations to acquire Digg for somewhere in the $200 million range.
reports that negotiations that have been on and off again, have been moving along for the last six weeks. A letter of intent has been signed and a deal is close that will bring Digg under Google News.
As close as a deal is with Google, it could still not come to fruition. Microsoft has previously expressed interest in Digg and I wouldn’t be surprised to see a pending Google deal to stir Microsoft’s interest in Digg again. It seems most of Digg’s revenue comes from a three year ad deal with Microsoft.
The big fish are gobbling up the little fish, but will Microsoft want a nibble too?