Google, Napster consider music alliance

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Google, Napster consider music alliance

The New York Post is quoting unnamed sources this morning as saying that Google may be considering an alliance with Napster, rather than building a music service of its own. The report apparently gives greater weight to an alliance – which is Google’s usual preference – than a buyout, saying the plan could “include an acquisition.” However, financial analysts who viewed the report pointed out to CNNMoney.com that, with $7.6 billion in cash on hand, Google could conceivably pull off a buyout without much sweat.

According to MarketWatch, shares of Napster are trading up in value by as much as 50% at mid-afternoon Tuesday, and Google shares are also trading higher, in anticipation of such a deal. Neither company has released an official comment.

(CNNMoney.com, MarketWatch)

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