Last week, Apple purchased online music site Lala for $85 million. Rumors are already flying that Apple acquired the start up for the quality of its engineers, and most importantly because it wants to move iTunes to the cloud as music streaming is getting more and more mainstream so to speak.
There is another reason why Apple bought Lala: it didn’t want Google to buy it first! It sounds a little childish but billions are at stake and it is safe to say that the war between Apple and Google is just starting.
According to the WSJ:
The twin pursuit of the start-ups reveal that the two tech titans have further plans to move deeper into each other’s business: Apple wanted to get into advertising, while Google sought a music service.
The relationship between the two companies has been heating up for quite a bit. First the resignation of Schmidt from Apple’s board, then the rejection of Google Voice from the App Store. More recently, Google snatched AdMob, the mobile advertising platform, from Apple. Now, Google is even entering the mobile market with its own device: the Google Phone.
Things are about to get ugly as the two companies will start bumping into each other more and more. I think competition is great for innovation and for bringing prices down and I can’t wait to see what’s to come in the close future.