Google denies Napster link-up

GOOGLE yesterday denied it was considering a bid for Napster, leading to shares of the digital music service to fall back from gains of as much as 60%.

Napster claims about 500,000 subscribers, making it a distant No. 3 to dominant music service Apple iTunes and RealNetworks’ Rhapsody. It had a net loss of $13.6 million in its September quarter.

Napster shares surged to a high of $4.95 on a New York Post report of a possible deal with Google. After the Google denial, the shares fell back to $3.77, up 65 cents, or 21 percent.

Shares of Google were up 2% to $435.16.

The New York Post said the Web search leader was mulling an extensive alliance with Napster, which could include an “outright acquisition” of the subscription music service.

“We have no plans to acquire Napster, nor do we have plans to develop a music store at this time,” said Google spokeswoman Sonya Boralv.

She said Google had recently introduced a music search feature that offers users faster access to music-related information they are seeking.