12/06/2009 (8:39 am)
Apple buys Lala music service
After a day of rumors, Apple Inc. confirmed late Friday that it has bought online music service Lala.
Terms of the deal were not disclosed. Palo Alto-based Lala’s backers include Boston-based Bain Capital Ventures, New York-based Warner Music Group and Bellevue, Wash.-based Ignition Partners.
Lala lets users listen to any song once without paying and pay 10 cents to be able to stream the music online, or 89 cents for most songs that can be played on a portable music player.
Cupertino-based Apple (NASDAQ:AAPL), by contrast, charges 99 cents for most songs through the iTunes store.
Apple isn’t saying what it will do with Lala.
Mountain View-based Google Inc paperless payday loans. (NASDAQ:GOOG) provided a big boost to Lala’s traffic in November when it started directing music searches to the company’s site when users were looking for songs. But that also appeared to tax Lala’s capacity with previous users complaining of the service slowing down.
Palo Alto-based Facebook Inc. also began allowing its users to purchase songs as gifts to send to their friends on the social network.
But the New Yorks Times reported Friday night that the Apple deal was triggered when Lala executives determined that they could not make a profit in the near term and approached the iTunes owner.
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