Google is looking to buy Digg (Social Network) for an estimated $200 million. It looks like Google is stealing Digg right from Microsoft’s grip. Once again Microsoft loses yet another battle, or at least it looks that way.

However, sources inside and outside Google reported stories about a letter of intent signed between the two companies, which put them just weeks away from a closed deal, but also about possible last minute interference from Microsoft.

Another reason to believe that these assumptions are not that far from reality is the obvious resemblance between the Digg voting system and one of Google’s experiments.

TechCrunch, reported in March of this year, that Digg was caught between two Internet giants, Google and Microsoft, both on the verge of placing their bids. According to an inside source, Google was ready to pay $200 – $225 million at the time, while Microsoft was seeking a lower price.

Google has the cash on hand, but I am not sure how this will help Google.