Yahoo reportedly plans to introduce its own online music store.

The company bought a firm called Mediacode last year – acquiring its media jukebox and media player. The company has also met with former Apple software partner MusicMatch.

The latter meetings have generated rumours of a possible takeover of the smaller firm, Cnet reports.

"Sources characterized the discussions as preliminary and said Yahoo has not yet made any offer", the report states. Yahoo declined to comment for the story.

Yahoo is reportedly considering a number of strategies to extend its business, including delivering original editorial content, selling insurance online and an aggressive move to try to double UK ads revenue.