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Message: Apple Confirms Lala Acquisition

Apple Confirms Lala Acquisition

posted on Dec 07, 2009 06:25PM

Apple Confirms Lala Acquisition


Apple on Sunday confirmed rumors that it acquired Lala, a four-year-old Palo Alto, California, online music-streaming company for an undisclosed amount.

Apple buys smaller technology companies from time to time and we generally do not comment on our purpose or plans,” Apple spokesman Steve Dowling said in a statement.

Lala, which claims to have 100,000 customers, allows users to listen to songs on their iPhones once for free or buy the right to listen to them indefinitely for 10 cents each. It also offers the possibility to buy the MP3 version of the songs for 79 cents.

Although it remains unclear what Apple with do with Lala and its 8 million songs catalog, what is certain is that it will help the computer giant further establish its hegemony on the digital music market in the U.S.-- iTunes downloads account for 70 percent of all U.S. streaming and offers a catalog of more than 11 million songs

Lala’s investors include Ignition Partners, Warner Music, and Bain Capital Ventures.

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