The Google/Digg acquisition negotiations were going smoothly as of last Tuesday, and the two companies were in final negotiations in the $200 million range. However, by late Thursday or Friday, Google decided to walk away from the deal, according to techcrunch.com.

By the time Google had walked away from the deal, they had had already reviewed Digg’s technology and financial statements. The negotiations were in the ‘term sheet’ stage, by which point the buyer already has a very good idea of exactly what they are purchasing, according to techcrunch.com.

Two sources close to the companies said that an issue that arose during the technical due diligence was to blame for the breakdown of the deal. Another source indicated that the issue was more personality driven, and that Google decided Digg’s top team wasn’t a fit for the search engine enterprise, according to the article.

The deal appears to be dead, and is the latest addition to the long list of failed Digg acquisition deals, including Yahoo Inc. Techcrunch continues saying that when a company is ‘left at the altar’ of an acquisition deal, other buyers are typically hesitant to step up.

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