Google Digs Digg

Google's on and off talks with Digg have been back on in a big fashion for the last 6 weeks. The 2 firms have allegedly signed a heads of agreement and are close to a deal that may bring Digg under the Google reports property.

The purchase price is in the $200 m. range, asserts one source. The corporations are now in last talks according to our sources, while it may be two weeks before it closes. And whilst the major deal points have been decided on, the purchase could still fall apart. Microsoft, which was formerly interested in the company, might be ready to step back in at a lower price. The majority of Digg's money comes out of a 3 year ad deal with Microsoft, that may be cancelled on a sale to Google.