Apple acquired Lala & Why?

By Mac Hack PC 8 December 2009 View Comments

Apple Lala

Here is an Updated Article – Apple is planning to re-engineer iTunes Service

Sources confirmed that Apple acquired Lala. Apple paid approximately $80 million for this acquisition.

That is less than half what investors valued the company at in 2008, but it’s more than the $35 million the company raised throughout its life. Which means that some investors could get their money back and more. But not all of Lala’s investors. Warner Music Group, for one, ended up getting back about half the $20 million it put into Lala.

Sources also confirmed that Lala had $10 million cash on hand. That meant it didn’t have to sell immediately.

Most of us may be thinking why Apple acquired Lala? Though it is not clear – We are sure to say, Apple has bigger plans with Lala.

May be Apple is interested in Lala engineering team. Because Lala’s real asset was its technology team.
May be Apple is planning to build streaming music into iTunes – Apple is planning to re-engineer iTunes Service
May be Apple is planning to bring Lala Social Features into iTunes
May be Apple is planning to increase iTunes music library by merging with Lala music library.
Last but not the least – May be all these are tied up with iPhone 4G & Next Version of Mac OS X ?? May be there are bigger plans related to iPhone 4G!!!! Who know? We just have to wait and see what happening in iTunes team and Apple.

On the other note, As you all know WiMax is getting bigger and bigger. Acquiring Lala will help Apple iTunes use the same technology as Lala. That will help iTune’s users to stream into music service anywhere they have WiMax access. With this service you can download and listen to you favorite songs and then if you like them you can purchase it later. Doing this will help iTunes increase it sales. With that saying, Apple is yet to approve Lala iPhone App. Source [via]

What do you think? Why Apple acquired Lala?

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