The company has 5.5M active users - a base much smaller than Pandora's (P +1.2%) 77M. Pandora has dipped slightly in response to the report, but remains up on the day.
Buying Songza would provide a shot in the arm for Google's music efforts. All signs suggest the company's Spotify-like All Access music service has seen limited uptake since launching last year.
A reported YouTube music service (would feature both music videos and audio-only streaming) might fare better, if Google can reach terms with music labels.