First Bytes: Yahoo, Digg Sale, Steve Jobs' Health, more....

-- Yahoo's decision to allow the fox (Carl Icahn) into the hen-house (Yahoo's board) means: a Microsoft buyout is either more likely (Citi's Mark Mahaney) or less likely (Cowen and Co.'s Walter Pritchard). Either way, reality bites for Jerry Yang. [Portfolio.com]

-- Will the Google-Digg talks stick this time? The web search juggernaut is in "final negotiations" to buy Digg, a popular social news aggregation site, for a rumored $200 million, according to TechCrunch. This negotiation have been going on for years. So, will the two parties finally come to a deal? [TechCrunch]

-- Apple chief executive Steve Jobs says he's cancer-free and "feeling fine." But concerns over his health appear to have pushed down the company's stock price. Is Jobs' health really a "private matter," or do Apple investors deserve to be fully informed of his condition? And who's been spreading these rumors about his ill health, anyway? Read this impassioned post by News.com Apple reporter Tom Krazit. [NYT, News.com]

-- Meanwhile, with the iPhone 3G mostly sold out at retail stores, scalpers are selling them for as much as $1000 on eBay. [BetaNews]

-- Federal approval of the XM/Sirius satellite radio merger may come down to one vote. The F.C.C., which consists of five, non-elected political appointees, is known for its attempts at political theater. The deal goes through, with conditions.  [WSJ]

-- GigaOm has purchased jkontherun.com, a mobile gadget blog. [GigaOm]

-Sam Gustin