Shares of Napster Inc. skyrocketed in premarket electronic trading Tuesday, as investors responded to a report that the online music store is being eyed by Google Inc.
The Internet search giant, which is due to report fouorth-quarter results after the bell Tuesday, is considering an “extensive alliance” with, or possibly a takeover of, Napster, according to a published report.
The New York Post, citing sources within the music industry, said Google wants to “align with Napster’ in lieu of creating its own music store.
This strikes me as fantasy. Why does Google need to buy Napster? The company could build a great music store by itself. Or perhaps….it’s buying Napster’s relationships….Reuters story. Original Post story.(reg required).
Update: Google is playing this down. (Thanks, OB)