According to the usually-reliable (concerning tech, at least) New York Post, Google is in talks with Napster concerning an "extensive alliance" or maybe an "outright acquisition." The Post says that Google is seeking to create a digital music service of its own and is considering bringing Napster in rather than start from scratch. A week ago, however, Napster told Reuters that it's "not looking to be sold." To me, a subscription a la Napster doesn't seem like Google's style, but even if Google had it's heart set on a pay-per-download model more akin to their current Google Video store, a Napster deal wouldn't be out of the question.

[Via Engadget, whose graphic I stole.]

Update: Google PR has issued a denial, saying "we have no plans at this time to develop a music store, or to compete with existing online and offline music retailers." (Thanks, azy891!)