toggle

AAPL Stock: 132.54 ( + 1.15 )

Printed from http://www.macnn.com

Lala deal valued at $80 million, say sources

updated 04:10 pm EST, Mon December 7, 2009

Counters earlier 'fire-sale' rumors

Apple's Lala buyout was worth approximately $80 million, say sources contacted by AllThingsDigital. The value is less than half what the Lala was estimated to be worth in 2008, but considerably more than the company's $35 million raised to date. Apple has refused to comment, and investors Ignition Capital, Bain Capital Ventures and the Warner Music Group have not made any statements.

In March Warner is believed to have taken an $11 million write-down for a $20 million stake in Lala, which could mean that it is entitled to compensation as part of the Apple deal.

Initial rumors hinted that Lala was being bought at a "fire-sale" price, for as little as half of the contribution of investors. Sources claim however that the company had about $10 million in cash during talks, giving it a better negotiating position. Apple is also said to have been impressed by Lala's engineering talent, which had produced a streaming music service and a matching iPhone app. The app has not made it to the App Store, and will likely never be published in its original form.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Notti smart lamp from Witti

Perhaps you've already seen our review of the Dotti LED display from Witti Design. Meet Notti, Dotti's "sibling". Notti is a softb ...

Seagate Personal Cloud (2-Bay)

When it comes to backing up files, many users are now looking to the myriad of cloud storage solutions available. There is no doubt th ...

Leitz Icon Label Printer

When you say the words "label printer" to people, they either just really don't care, or they get incredibly excited. This is one o ...

toggle

Most Commented