Is Apple on the Acquisition Trail?

• Posted by Chris Selland
• on December 5th, 2009

Interesting news about $AAPL acquiring online music company LaLa Media.  Although a spokesperson’s statement that ‘we acquire smaller technology companies from time to time’ is true, it has been quite some time since the company’s last deal (PA Semi in April 2008).

The acquisition has received generally positive reviews so far – although LaLa is not particularly well-known, its services are innovative and highly regarded by customers and the media.  The ability to sample and stream online music is a straightforward enhancement to iTunes, and moves Apple closer to a ‘MobileMe for Music’.  One also wonders whether an additional motivation for Apple might have been interest in LaLa from $AMZN who arguably would have even greater interest in building out online and mobile music properties – since they effectively don’t have any right now.  Keeping LaLa out of Amazon’s hands could have been the biggest benefit of all.

In any case, this acquisition appears to be a good fit and a solid acquisition by $AAPL that barely puts a dent in their huge cash hoard.  Will there be more and larger deals to follow from Apple (such as the one I predicted last week)?  Time will tell.

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