Apple Buys Lala
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".