Yes that's right Digg has been acquired by News.com and the guys from News.com say they are rethinking and rebuilding the new Digg. The new version V1 will be available on Aug 1 and you can follow what the developers have to say and add your suggestions. Digg will continue to run under the same name and News.com will remain the same. Identities of the two web apps are not going to change in any way. The developers of the new Digg says that it is being treated like a startup again and that there is still some meaning to be had among all the chaos of internet news. In-between LOLCats and Kim Kardashian stories there are still individuals who can get together and brake news of real-importance.
There has been a lot of debate on the internet - Did Reddit kill Digg?. In many ways the develops of the new Digg seem to be comparing themselves to Facebook and Twitter with no mention of Digg in the news. Reddit seemed to be the one that killed Digg and not the other two. Sites that are dedicated to building a community around news and web culture need to have in place a way to accommodate everyone. Digg did not seem to have this and somehow a culture of wanting only the best to be around and survive was what we found happening at Digg. People would post news and it always got lost there was a 1 in a 100 chance of any coverage - somehow Digg lost contact with people. The new Digg would take care to notice that it was people who made Digg and they need to ensure that every single person on the new Digg is able to share news and voice their opinions. So let's hope Betaworks has something good planned for the new Digg and all the old die-hard Digg fans are awaiting to see what's new on Aug1.
Source: Rethinking Digg V1 you can also follow the discussion on Reddit.