updated 01:10 pm EST, Wed December 15, 2010
Google politics may have flubbed Spotify deal
Google had tried to make buyout offers for Rhapsody and Spotify but was sabotaged by its own corporate culture, a rumor alleged today. The company had wanted a subscription music service to fulfill its own music store plans, but the three divisions jockeying for the deal couldn't agree and move ahead, the SAI sources said. It consequently gave up and turned to its music locker plans, which themselves have faced label opposition.
The failure was characterized as endemic of Google. While it tries to break up the company into small groups to quickly change its focus, the move also makes it difficult to create a clear direction for where the company would go. Even events on campus create problems since it isn't clear who is coordinating the event, the tipsters explained.
Chrome OS may have been directly affected the over-decentralized strategy. Co-founders Larry Page and Sergey Brin reportedly went over CEO Eric Schmidt's head and developed the web-only platform where Schmidt himself was advising against it.
Spotify has publicly denied any talks with any companies, but the rumor if true would have prevented a conversation as Google would have failed to even get to early negotiations. Google's music service is widely thought to have been an attempt to beat Apple's iTunes and iPhone with Android equivalents.
Any developments may go without an incentive to wrap up quickly in the near future as Apple's iTunes cloud enhancements may be struggling themselves due to disputes over licensing a private collection for web use.