If reports are to be believed, Google could be in talks to purchase one of the worlds biggest internet radio companies.
Last week Zachary Rodgers of the ClickZ website reported that one high profile source had said that the worlds largest search engine was on the verge of another major acquisition with Sirius, which counts Howard Stern and Eminem among its many contributors.
Mr Rodgers appealed for comment or any other whispers that may have been heard regarding the proposed deal and two days later Tyler Savery of radio news site Satellite Standard Group was eager to point out why the merger seemed unlikely.
Although Mr Savery pointed out that there was nothing to suggest that the buy-out was impossible he cited the previous merger of Sirius and XM Satellite Radio Holdings earlier this year as one reason that the Google rumours could be just that.
He states that the contract between Sirius and XM was explicit in stating that no further outside offers should be solicited and that as part of the deal both companies agreed to not take part in discussions or negotiations that could in any way facilitate merger proposals.
Prior to the Sirius/XM deal, CNN Money estimated that the two satellite radio companies had a combined number of subscribers totalling around 14 million and that the merger would give the company an estimated market value of $13 billion.
The company has built these figures by enlisting big names such as Stern and Eminem to produce online radio streams. It has also signed deals with popular personalities such as US domestic goddess Martha Stewart and former member of Bruce Springsteen’s E Street Band, Steven Van Zandt.
Mr Savery concludes that often Google’s movements and potential acquisitions are provide entertainment for the online community who can be quick to jump onboard when rumours of this nature arise. However, he also states that if the search engine was looking to make such a bold move it would be met with extremely limited cooperation from both Sirius and XM and that the subsequent risk that this would create would make for a hazardous investment.