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.