I'm actually not sure we should be convinced this will happen since it's just coming from a single rumor from a single news source-- but we'll see how it goes.

I'm actually not sure we should be convinced this will happen since it's just coming from a single rumor from a single news source-- but we'll see how it goes. I'm a big fan of Valve (I integrated/wrote some popular scripting engines for their Source engine), but I'm not so certain this is a fantastic match. They probably don't need Google and Google doesn't need them-- but while it's not a great idea, it's probably not a bad one. One thing to note is that not only does this get Google a content distribution network, but Steam also has a community, IM, etc. I don't know any real numbers for who uses those pieces, but it's likely to have grown to become one of the largest gaming social networks. Those have shown to be worth a good bit to the right company (for example, Xfire sold to Viacom for $100 million). Top that off with the advertisement network and technology Valve integrated already into some games. So compared to most game companies, I think Valve has some really great business decisions in their portfolio that should make them attractive to pretty much everyone. They took the money from the Half-Life series and created a great game platform, solid titles, an innovative and well-established software distribution network, some in-game advertisement technologies, along with an up-and-coming social network with no sign of slowing-down. If you're looking to invest in an entertainment company that's built some long-term value, you can do much worse than Valve.