Google isn't buying Wi-Fi firm for $400 million

SAN FRANCISCO -- A press release stating Wi-Fi provider ICOA has been acquired by Google for $400 million is untrue.

The story first moved this morning among the tech press -- including a piece on Paste BN from The Associated Press -- as a believable next step in Google's Internet push. Google confirmed that the story is not true.

The release on PR Web said that Google had bought the operator of Wi-Fi hotspots in high-traffic locations such as airports, hotels and fast-food restaurants.

The reported acquisition of ICOA, a Warwick, Rhode Island, company, seemed like a logical step for the search company. The release duped outlets including GigaOm and The Associated Press.

ICOA reportedly owns or operates Wi-Fi wireless access services in 40 states. It also sells technology for others to run similar Wi-Fi networks under their own brands.

It wouldn't have been Google's first venture into Internet access. The Mountain View, Calif., company is building an ultra-fast wired Internet service in Kansas City, primarily to showcase what's technically possible and to test new ways to use the Internet.

The Associated Press contributed to this report.