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More G Rumors: Napster

By - January 31, 2006

NypostnapsterFrom BizWeek:

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)


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8 thoughts on “More G Rumors: Napster

  1. Matt VB says:

    Whoa -

    Are you kidding me? Considering Google failed (and continues to do so) at selling video’s what makes you think they can sell music.

    Overall, I give Google an “F” at developing any consistent product or marketing message. Buying a brand makes more sense when looking at music distribution.

  2. Matt VB says:

    Whoa -

    Are you kidding me? Considering Google failed (and continues to do so) at selling video’s what makes you think they can sell music.

    Overall, I give Google an “F” at developing any consistent product or marketing message. Buying a brand makes more sense when looking at music distribution.

  3. Gopi says:

    Napster is a brand synonymous with music download and combining it with google’s distribution power will be a big Win-Win for both parties

  4. davidp says:

    This rumor makes zero sense. Google has substantially higher brand recognition and value than Napster, irrespective of the music arena.

    Google is always talking to different companies. A very small fraction of these conversations actually results in any type of partnership or acquisition.

    If Napster is actively seeking a buyer – as is widely speculated – then it’s likely that a Google-Napster rumor would significantly help Napster’s leverage.

  5. John says:

    What a mistake this would be for Google. Napster means only one thing… the past.

  6. LeeAnn says:

    If Google created a music service that was compatible with the iPod, it would succeed, assuming they’ve learned a few lessons from the problems with the video store. According to my analysis, Google sends a larger portion of its visits to music sites than the other search engines.

  7. bloggaru says:

    i agree, what makes Google think they can sell music? their video product is pretty weak so far

  8. Greg says:

    In response to John’s post dated January 31 2006:
    Napster may have been around for a while, but they have their legal concerns straighted out and they alreay know what they are doing in the industry. Furthermore, Napster’s stock price is a very good entry point in the overall scheme of things. IMO, for next to nothing Google could acquire or at least partner with Napster for nothing and have a good package. Name brand, no company new to the business, and a company that is still contuining to gain subscriptions for a very good product. IMO, “the past” for Napster is under much different circumstances than it is today and Google could’t hurt by dealing with it.