Google Report Spikes Napster Stock

0

Online music service Napster Inc. saw its shares shoot up more than 30 percent to nearly $5 after the New York Post reported that Web search giant Google Inc. was in talks to acquire the struggling L.A.-company. Google has denied the report.


Napster rose 25.3 percent to settle at $3.91 on Tuesday. Shares had jumped as high as $4.95 earlier in the session, though neither company offered further comment on the report.


Napster, an early leader in online music subscriptions, has suffered under competition from Apple Computer Inc.’s iTunes, RealNetworks Inc.’s Rhapsody music service and Yahoo Inc.’s year-old offering, Yahoo Music.


Google does not have an online music offering, and told the New York Post it did not have plans to create its own.


Napster shares had been on a steady decline since last year, losing 62 percent of their value over 12 months.


Napster last week eliminated a level of middle management, laying off 10 percent of its workforce in what could be interpreted the prelude to a takeover.

No posts to display