Media Memo is reporting that Apple paid somewhere in the neighborhood of $80 million to acquire Lala Media, which we reported here last week.
Apple ended up paying around $80 million for the company, according to multiple sources. That’s less than half of what investors valued the company at in 2008, but it’s more than the $35 million the company raised throughout its life. Which means that some investors could get their money back and more.
Additionally, Media Memo reports that Warner Music Group had invested $20 million, but wrote down $11 million the investment. They may or may not make that money back, from the lower write-down amount.
Lala, reportedly had $10 million to burn, so they could function on their own for some time. However, the company believed they had no future as a long-term profitable company.
We still don’t really know why Apple decided to buy Lala, but the majority of sources claim it was for Lala’s engineering talent. As this story unfolds however, it appears Apple may be interested in providing a music streaming option in iTunes.
Needless to say, $80 million is a drop in the bucket for a company with $35 billion in cash on hand.
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