We got an email yesterday claiming that Microsoft was poised to buy Digg. Lacking sources and credibility, we ignored it - most likely, more baseless rumormongering. However, Microsoft and Digg will announce a deal today: Microsoft is set to serve ads for Digg, providing its tech and sales force for the job.
Existing ad network provider FM Media will stay on to provide "conversational marketing" and integrated deals (this is stuff like the PeopleReady campaign that caused a little controversy - ironically, that was a Microsoft campaign). Microsoft, however, appears to be taking on the bulk of the work - a big win against rivals Google and Yahoo.
My guess: the Digg acquisition talk is bull and someone just happened to overhear about the ad deal and misunderstood. Still, Microsoft buying Digg would create an awesome riot on the social news site, wouldn't it?