Apple spent $3 million on Lala, not $80 million

Hammacher Homepage 300x250“$80 million for LaLa? That isn’t what we’re hearing,” Michael Arrington reports for TechCrunch.

“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.

27 Comments

  1. @Fergman:

    You can’t just offer everyone a job due to non-compete agreements, the fact that not everyone would come over, the pain of dealing with individual negotiations (especially once the engineers realized Apple wanted all of them). Plus, you wouldn’t get the assets of LaLa, such as the contract with Google or other technology. I’m sure there’s something being developed at LaLa that Apple wants that has not surfaced yet.

  2. (Jamie Sidey said) ..
    “….The pop-up tabs associated with this site are getting really intrusive. If this continues I’m going to have to get my Mac news elsewhere….”

    You must be a new(er) reader of MDN ..
    ’cause everytime someone complains of the ads (here) ..
    someone else always points them to ..
    this link ..

    Hope this helps !

  3. 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

  4. 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.

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