The rumor took off yesterday especially since previous statements from Valve contained catch phrases like “anything is possible”. Valve was known to be pretty fond of its independent status, but, then again, so were many other companies that now belong to industry giants.
Google chose to remain silent on the matter for the time being. The search giant might’ve considered buying Valve for its Steam distribution service, but, then again, Chrome’s recent success might’ve also changed their perspective on things.
It seems that nowadays the Google brand slapped on a product is a sure way to get ahead of your competitors and so, should Google desire to enter the content distribution market, they may choose to don so via an in-house developed service.
Still, just to make Google think again: you guys had to buy YouTube, didn’t you?