And it continues today - the latest from TechCrunch just this afternoon:
Google’s on and off negotiations with Digg have been back on in a big way for the last six weeks, we’ve heard from multiple sources inside of Google, and the two companies are close to a deal that will bring Digg under the Google News property. The acquisition price is in the $200 million range, says one source.
Best of luck to the Digg team - the site is cool and they seem like smart, good guys. I'm just not sure what I'm going to be able to read about if they do finally sell...;)