Digital Music

Apple Buys Lala

image from weblogs.baltimoresun.com image from www.appscout.com (UPDATE 2) An Apple spokesperson confirmed on Sunday that Apple has bought Lala.com.

Apple is reportedly close to acquiring Lala. "Talks are very advanced." according to CNet. "One of the sources
said that the sides have already agreed on terms and have only to sign
a final agreement."

Exactly what Apple's plans are for Lala remain unclear, but its an indication that the the tech giant finally understands that music consumption is moving to more than the buy an iTunes download model.  Lala's dual focus on free streaming, bolstered by its new relationship with Google, as well as, play anywhere music in the cloud, could both be attractive to Apple.

Neither company has commented yet, but Lala's founder has a strong history of building company's to sell.

Several new sources are adding insights:

  • The deal is done; not tentative.
  • As I speculated Apple is buying primarily music in the cloud tech and the smart engineers at Lala that created it.
  • Apple may have gottent Lala at a bargain price. "One person with knowledge of the deal," a source to the NY Times, "said that the negotiations originated when Lala executives concluded that their prospects for turning a profit in the short term were dim and initiated discussions with Eddy Cue, Apple’s vice president in charge of iTunes".

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5 Comments

  1. Smart of Apple, as this is their entry into the world of streaming music that allows them to stick to their model of purchasing individual songs/albums rather than a subscription.
    That said, I’m curious to see what they do with the 10 cent web songs. Think they’ll continue to offer them? Especially considering we are now guaranteed to see an iPhone app that can play those web songs anywhere, making 99 cent downloads even less appealing…

  2. As a Mobile Silicon Valley and Digital Music Veteran, I used to work and own stock in Bill N and Billy A’s old company, SEVEN Networks, and while I’m happy for Bill N that he could exit out of this affair nicely, this Co. was another example geeks running a company that they have no business leading: too many Silicon Valley VC’s believe–wrongly–that tech brains can lead the show up to their big cash out: Ignition was lucky this time, because Spotify is not for sale and Lala was a local-area option, but only just.
    I will not be surprised when Apple soon realize how inept the Senior Management is here (like SEVEN before and after the merger) and clean house–only to be replaced by their branded version of corporate sycophants.
    Yurovski
    Founder of Electro band Canorous
    Co-Founder of Spectrum Mobile

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