Google Walks Away From Digg Deal

This just in: Days ago it was being reported that Google was in negotiations to acquire Digg. Now TechCrunch is reporting the Google/Digg acquisition is off.

Negotiations were in full swing as of last Tuesday passing the term sheet [document outlining the material terms and conditions of a business agreement.] stage and the two companies were in final negotiations in the $200 million range. But sometime this last week Google decided to walk from the deal.
Digg was notified on late Thursday or Friday. Google was in the due diligence stage of the deal, where they peer deep into Digg’s technology and financial statements. Most term sheets are non binding, so anything that gives the buyer pause can be used as an excuse to walk away - but generally the buyer already has a very good idea what they are getting well before the term sheet stage.

Sources are indicating there was something about the management or basic technology about how Digg works that was to blame. Kevin and Co. seem to be doing fine, though, with their current venture funding of $11 million.

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