AppleInsider StaffInternet giant Google is considering an extensive alliance with Napster, which could include an outright acquisition, as it plots its move into the digital music world, reports the New York Post.
Representatives for both Google and Napster declined to comment on rumors of an acquisition or an alignment.
However, last week a Napster spokeswoman told Reuters at an annual music industry conference in Cannes, France, "The company is not looking to be sold, the management is not looking to step out."
Napster, once synonymous with the pirating of music, also recently laid off 10 of its middle managers.
Robert Peck, an analyst at Bear Stearns, said in a recent research note that he believes Google is in the midst of creating its own iTunes competitor.
Peck predicted the company would roll out a music service in the next three to six months, saying such a move would be "logical" and that it "fits with Google's recent moves and its ultimate goal of organizing the world's information."
The research note, released last week, prompted Apple shares to slump 2.2 percent.
Update:
A Google spokesperson, in an emailed response to CBS MarketWatch this afternoon, said the search giant has "no plans to acquire Napster, nor do we have plans to develop a music store at this time."
Charles Martin
Wesley Hilliard
Amber Neely
Christine McKee
Marko Zivkovic
Malcolm Owen
Oliver Haslam
29 Comments
I heard about this on the radio this morning. I guess Google wants to buy Napster since they don't know anything about design aesthetics, period. Just look at their "video store". The only way they would get a decent product out the door in that time frame would be to buy it off someone. Saying decent might be pushing it too.
Great! Now if they only had something to play those songs on, perhaps with headphones....
Based solely on the fact that Apple shares fell by 2% after Google/Napster talk rumors started, AppleInsider announces this to be a definite connection? IMO, AppleInsider has been the most reliable Apple rumor site (especially when ThinkSecret can't decide whether Apple computers are selling or not), but this isn't a rumor, it's barely even speculation. Yesterday, it rained. Today, I stubbed my toe. Therefore, was it the rain that caused me to stub my toe?
Crees, I agree with you on the design issue. Google has developed some excellent online services and AJAX applications, but their UI design is awkward. Things are improving (for example, a delete button at last appears in Gmail) but so far Google's best design is its search engine, and even that could use the eradication of the 'lucky' button. Does anyone even use that thing?
Sit back and wait for the 'competition is good' comments.
I think Google is the corporate embodiment of "Short Attention-Span Theater". Their search technology is awesome. AdSense and AdWords are hugely successful. But many of their other efforts are pathetic. They remind me of last decade, when "analysts" droned on about how anything Microsoft touched would dominate the marketplace. (Remember Microsoft Money?)
As an illustration, go to Google and click the "more" link. Note how most of what's on the "second page" is "beta"? Some have been beta for years!
Check out the "Catalogs" link. Some of the catalogs are from 2002! Oh, never mind - it's "beta". On any other corporate site, information this out of date would have been pulled in, say, 2003, or the Web developer would be looking for a new job. I guess the billions in market value haven't allowed Google to hire one person who could keep that site up to date.
Things are improving (for example, a delete button at last appears in Gmail) but so far Google's best design is its search engine, and even that could use the eradication of the 'lucky' button. Does anyone even use that thing?
I attended a Google talk given at my university and when asked, the Google spokesman basically said that people missed the lucky button in various usability tests for their website. People might not use it but they certainly felt something was amiss.