We reported a while back on Google interested in acquiring Digg, with advanced negotiations in progress. Well, that deal didn't get too far with TechCrunch stating that the deal is now void, and that Google has 'walked away' from it.

Google was in the due diligence stage of the deal, TechCrunch states, where they peer deep into Digg's technology and financial statements. "Two sources close to the companies suggested that some issue that came up during technical due diligence was to blame. One source said that the issue was more personality driven, and that Google decided after spending more time with Digg's top team that there just wasn't a fit."

Digg is now looking to start a new round of financing.