Digg seems to be pretty much done for. The site isn't shutting down just yet, but rumors say that its tech team has been "acquired" by the Washington Post where they'll be working on the newspaper's digital efforts. The Washington Post has been doing some interesting things with Facebook integration, apps and so on.
However, contrary to initial reports, Digg isn't being bought on the whole. The site has been trying to sell itself for months after several strategies to broaden its appeal or at least restore some of its former glory haven't yielded much.
The tech team may be gone, but the site itself will continue, for now. Still, it seems rather obvious that there aren't many suitors for the site and the technology. Its fate looks grim, but it's still undecided.