UPDATE: Kevin Rose has directly denied these rumors.
Is Yahoo acquiring Digg? Jeremy Botter and Kevin Burton say yes, but Kevin Rose, the founder of Digg, says “Rumors… we are focused on features, not selling the company.” in a comment (#64) to the story on Digg.
I have no direct information on this, but Kevin certainly did not deny it in his comment. Of course, it could just be bloggers stirring up trouble again. :-)
Rumored price is the $30 million range.