“LaLa was purchased for $17 million by Apple, according to our sources with indirect knowledge of the deal,” Arrington reports. “And the company supposedly had $14 million in cash in the bank, meaning the actual purchase price was really $3 million.”
Arrington reports, “That’s in line with recent competitive sales like iLike ($20 million) and iMeem ($1 million). LaLa had plenty of cash in the bank, but they were burning $500k/month, say our sources. There’s just no reason Apple would pay $80 million for the company.”
“We also believe that LaLa was acquired mostly for the star engineering team and the awesome recent Google deal more than for the product. iTunes in the cloud isn’t something we should hold our breath for,” Arrington reports. “$3 million for top-of Google music results and a top team of engineers makes a lot of sense.”
Read more in the full article here.
They offered me millions to purchase my creative forum statement skills, but I turned them down as a matter of principle…I’m just not for sale…and anyway, my pre-arrival to-do list is much longer than even Mariah Carey’s
iabilities, shmiabilities
That was my point. Investors may have lost money…if they are smart and lucky, they may be able to keep that in Apple stock (how nice would THAT be?) and recoup some.