Recent news has just surfaced that Apple bought out the wireless music streaming service called Lala for a price which is still up for debate.
Lala allows users to listen to any song in their 8 million song library for free one time only. After that, it acts like iTunes where you can have a 30 second preview. You can either download the song normally for 89 cents or you can use their unique system of paying 10 cents per song which allows you to play them over the internet at anytime but no download. The service is a startup company that has only been around for about four years. There are two seemingly true rumors of purchase price.
The first estimate is $80 million and although possibly true is an absurd amount of money. The second estimate which in my belief is much more viable is $17 million. $17 million is a definitely good purchase price since Lala themselves have $14 million in their bank. For a $3 million dollar investment Apple has simultaneously taken out a competitor in the music business and acquired a few qualified engineers for their systems. $80 million on the other hand would make sense for only one reason in my opinion. While it doesn’t seem likely, if Apple could use these newly acquired systems to have their own sort of music streaming service and if they do it correctly, this could turn out to be quite the investment.
At this point there isn’t much more information on the subject but we’ll update this post if any significant info comes our way.
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