Google to Buy Napster? [Updated]

Reuters reports that Google may be be interested in acquiring Napster:

Internet giant Google is in talks with Napster over an "extensive alliance" that could include an "outright acquisition"

While Napster itself denies it is for sale, the music downloading service has been rumored to be in financial distress with the recent layoffs of 10 middle managers.

Meanwhile, there has been speculation that Google will expand its offerings to include a music download service alongside the recently released Video download service. Google's Video Service was launched in January.Update: Google denies the rumors that it will be entering the music download/sales market.

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