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Update: Google Buying Video Game Maker Valve? Valve PR Says ‘Complete Fabrication’

Nothing close to a confirmation on this one, but it’s out there… Tech news site The Inquirer says Google (NSDQ: GOOG) is set to announce the acquisition of videogame maker Valve, citing “well placed sources.” In addition to the game Half-Life, Valve is also the developer of Steam, a game distribution platform. The thinking is that it’s Steam, much more so than the titles, that Google would be after. More as it develops.

Update: Yeah, this one seemed pretty weird, and now Valve has denied it. A spokesperson told an MTV videogame blog that the story is a “complete fabrication.”