Google has emphatically denied the suggestion that it is looking
to buy music-pirate-turned-legit-song-shop Napster.
The rumour first started circulating following a report in the New York Post which said Google was readying its chequebook for a
takeover, or preparing to announce a union between the two.
The report came hot on the heels of earlier suggestions, denied by
Napster, that the company was preparing management layoffs and was facing up to
possible liquidation, after struggling to steal market share from the iTunes
A Google spokeswoman said talks of a possible combination between
the search giant and Napster were "a complete rumor".
She said: "We have no plans to acquire Napster, nor do we have
plans to develop a music store at this time."
Whispers of a tie-up initially sent Napster stock skywards. Since
Google first made it clear it wasn't interested in a takeover, however,
Napster's share price has started to dip, although it currently stands around 25
per cent up on yesterday's closing price.
Google's stock, meanwhile, fell initially following news of a
profits miss, although its stock price has since returned to its approximate
value before the announcement.
Jo Best of Silicon.com reported from London.