RUMOR: Apple and Spotify in ‘on-again, off-again’ acquisition discussions

Apple Online Store“Here’s what we heard – Apple and Spotify are in on-again, off-again discussions about an acquisition, but at best it’s very early in the process. No firm price has been offered, no term sheet tabled,” Michael Arrington reports for TechCrunch. “Still, it’s interesting that the two are talking.”

“But way more interesting is this – Last year, around the time that Apple acquired music service Lala, Google and Spotify were deep in acquisition discussions, says a source with knowledge of the negotiations,” Arrington reports. “Ultimately no deal happened, and the two companies tried to negotiate a deal to have Spotify pre-installed on all Android phones instead.”

Arrington reports, “But the deal almost happened, says our source, and Google was going to pay nearly $1 billion for the service. Ultimately the deal went sideways because Google was demanding that all label deals be grandfathered in. And Spotify wanted a $800 million+ walk away fee if the deal faltered.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “iWill” for the heads up.]

38 Comments

  1. I stopped paying for music (again) the day Apple killed Lala. Worst decision they have made in years. All growth potential in online music is in cloud based and subscription, most people are losing patience with full price to download and then having to manage hundreds of GB of files. Spotify or no, I hope Apple gets with the program and gets a pay to stream service like Lala up and going soon. The idea that they are making these aquisitions for the darker monopolistic purpose of protecting their download only model is just depressing.

  2. I stopped paying for music (again) the day Apple killed Lala. Worst decision they have made in years. All growth potential in online music is in cloud based and subscription, most people are losing patience with full price to download and then having to manage hundreds of GB of files. Spotify or no, I hope Apple gets with the program and gets a pay to stream service like Lala up and going soon. The idea that they are making these aquisitions for the darker monopolistic purpose of protecting their download only model is just depressing.

  3. I personally think Jobs is NOT frozen in place on downloads only.

    Why else build what looks like over 1 million sq. feet of data center space in such a short period.

    Jobs is a realist in identifying where customer desires are moving, so I think Jobs will offer BOTH downloads & streaming.

  4. I personally think Jobs is NOT frozen in place on downloads only.

    Why else build what looks like over 1 million sq. feet of data center space in such a short period.

    Jobs is a realist in identifying where customer desires are moving, so I think Jobs will offer BOTH downloads & streaming.

  5. @ Fredo, I hope you are strictly talking for yourself only. Including the statement “most people” in your argument is a clear indication of grasping at straws for justification to your own feelings and opinion.

    I have several weeks worth of music and podcasts in my library and I have never had to manage any of it, iTunes does it for me. I have created my own playlists and even set genius to create a genius playlist for me. I will not mess about with Ping until I have a clear statement from Apple inc. that it has no links, will never any links with faceturd.

    PS What is this program you refer to, that Apple inc should get onto? Who is on this program? Who manages this program? What benefit does this program have for me or anybody else for that matter?

    You do however present an interesting point of view, my beaf with it is that you do not take ownership of your argument.

  6. @ Fredo, I hope you are strictly talking for yourself only. Including the statement “most people” in your argument is a clear indication of grasping at straws for justification to your own feelings and opinion.

    I have several weeks worth of music and podcasts in my library and I have never had to manage any of it, iTunes does it for me. I have created my own playlists and even set genius to create a genius playlist for me. I will not mess about with Ping until I have a clear statement from Apple inc. that it has no links, will never any links with faceturd.

    PS What is this program you refer to, that Apple inc should get onto? Who is on this program? Who manages this program? What benefit does this program have for me or anybody else for that matter?

    You do however present an interesting point of view, my beaf with it is that you do not take ownership of your argument.

  7. @ Fredo

    Cloud computing will supplant local computing the very day that mobile internet connectivity is as ubiquitous as mobile electricity storage (aka batteries).

    Until then, we will continue to see various shades of the hybrid model.

    MDN word: book, as in “Book in a breakfast at Milliway’s!”

  8. @ Fredo

    Cloud computing will supplant local computing the very day that mobile internet connectivity is as ubiquitous as mobile electricity storage (aka batteries).

    Until then, we will continue to see various shades of the hybrid model.

    MDN word: book, as in “Book in a breakfast at Milliway’s!”

  9. Arrington is reporting a rumor of a deal that has no one can verify, is neither “on” nor “off” and is too early in development to even have a term sheet.

    OK, Mike. Go back to angling in on – and losing all rights to – another me-too technology offering that no one gives a shit about.

    Scumbag.

  10. Arrington is reporting a rumor of a deal that has no one can verify, is neither “on” nor “off” and is too early in development to even have a term sheet.

    OK, Mike. Go back to angling in on – and losing all rights to – another me-too technology offering that no one gives a shit about.

    Scumbag.

  11. I have a hunch about the stupid rumors swirling around Apple. I would not be surprised if Apple has no plans for any acquisition, and if they do, the historical pattern of Apple is to make a small acquisition of a privately held company for its technology or people, specific things that Apple does not have. The company has been extremely successful and selective in doing so.

    As for a big acquisition, I call BS. What we are seeing is either the deluded fantasy of some third rate Wall $treet analyst (for example, the often quoted Shaw Wu has a TERRIBLE track record), or shameless proffering of a big Wall $treet firm trying to force a bad marriage – in those train wreck mergers like AOL Time Warner, the only winner were the big Wall $treet firms that got fat on hefty underwriting fees. I’m sure they yearn for it again.

    Then too, there are the stock manipulators. By merely planting a rumor and getting it on CNBC, these scum can quickly pump the price of stock of a company like Sony, shares of which they purchased a day or so before. Before the day is out, the hedge fund kiddies have bailed out of the stock, leaving the little guy to hold the bag, taken their illegally gained profits and moved on.

    Stir and repeat.

    The financial newspapers, TV networks and websites are only too happy to oblige in this BS. “Synergies! Can you feel the vibe?” If I hear or read the word “synergies” one more time, I’ll puke.

    The truth is that any acquisition is fraught with risk. Imagine taking and American company like Apple and attempting to merge it with a Japanese company like Sony. Two different cultures and mindsets. The same would be true of Adobe. Ask yourself: would you want the ex-Microsoft MBAs who destroyed Adobe to pollute Apple? Often, it takes years to undo the damage caused by shitty managers and people who won’t adopt to Apple’s way of doing things.

    Wall $treet, of course would be fine with that. They just want to snort more profits and fees.

    My advice: tune this crap out, just like I do all political ads. You won’t find a shred of truth.

    One last thing: @Fredo, consider that your beloved LaLa might not be dead. Did it ever occur to you that the data centers that Apple is building could be for that very purpose?

    Think, people. Think.

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