San Francisco-based startup Digg has been in recent acquisition discussions with Google. According to TechCrunch, Google has signed an agreement to purchase Digg for around $200 million. The deal is likely to be finalized within two weeks and that Digg would become part of Google News. In google news, news stories are selected by computer algorithm whereas in Digg news stories are submitted by users and ranked according to user approval ratings. Actually what I feel is that Google is interested in using Digg’s technology to help improve its search results by having users vote on their quality.

Digg.com was launched in 2004 by Kevin Rose and his friends. Now it has become one of the most popular social bookmarking websites, with users submitting stories and voting for other’s submissions to appear in prominent positions on the site. This year, Yahoo also launched one bookmarking website called Yahoo! Buzz which is much similar like Digg. That is why Google is so much interested in this deal.