It’s speculated that Napster, who’s shares have raised over 30% in premarket trading, and Google are in talks over an extensive alliance that would increase sales.
Last week, Napster laid off 10 managers and as usual, some rumors came up. On January 23, Napster’s spokesman declined the rumor that the company was to be sold. Napster was founded by a college student Shawn Fanning, who turned his simple idea to a synonym of music piracy.
Google has been thinking of bringing their own music service. But instead, they are now in discussions with Napster, to form an alliance, for their new digital music service.
This could be one of Google’s best deals from my point of view. Napster rose 1$ (32.05%) from a close of $3.12 to $4.12 in premarket trading on the Nasdaq on Monday.
While Google shares rose 75 cents from a close Monday of $426.82 to $427.57 in premarket trading on the Nasdaq.
Google and Napster, will this work out? Let us know what you think!