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According to TechCrunch news Google and Digg are very close to making an acquisition deal. Google should buy Digg in not so long time for about $200 million. There have been many rounds of negotiations between Digg and Google over the last several weeks and now it seems like its close to finishing the deal.

Digg is a social media website with user driven content and a voting system. Founded in October 2004 by Kevin Rose, Digg became one of the most popular and well-known websites on the Internet. According to Alexa its 115 most popular website on Internet at the moment. And after Google acquisition that position may only raise.

Google is very interested in the Digg’s voting system and they are experimenting with this concept already. After the purchase Google will be given the technology behind the voting system and that will only make their plans go faster.

Digg on the other hand may become even more popular website thanks to being part of Google family. It may become the mainstream website on the Internet probably serving Google ads.

By now Digg is tied with Microsoft tree year ad deal according to which Microsoft is serving ads on Digg. After the Google acquisition that contract will be terminated and Google will gain access to Digg advertising and user profiles. Don’t forget Google main business model is based on search engine, and with huge database of user behavior belonging to Digg, Google will gain a great deal of informations they need about social media websites and users.

If the deal is done it will be another big acquisition from Google.

[Update] Google-Digg deal failed. Read the entry to see why.