Reuters began reporting earlier today that Google is in talks with Napster to create an “alliance” that could include a purchase of Napster. Google immediately denied the rumor. They all deny these rumors at first. There was a rumor about Digg getting bought by Yahoo the other day that we wrote about on Supergeekblog. Immediately denied by Kevin Rose.
The facts are that Napster already has a reported 500,000 subscribers who all pay. Google? They have nothing more than a domain(googlemusic.com) that they bought back in 2003. So would it make sense for them to enter into a alliance with Napster? Yes. Would it make sense for them to buy Napster? Maybe.
There have been an abundance of purchase lately, with only a few of them coming from google. It’s not exactly a secret that Google would like to add a music store to their ever expanding portfolio. Having a ready made half mil of subscribers makes Napster an attractive target.
According to the article on the timesonline.co.uk, Napster is set to announce it’s third quarter financial results on February 8th. Look for the Google-Napster talk to heat up a little if the numbers are better than the $13.6 million loss in the previous quarter.