What Is a Lala Worth? More Signs of a Fire-Sale

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What did Apple pay for Lala, anyway?

Industry consensus is that Apple grabbed this profitless darling for a song, and actually, that aligns with the distressed valuations pegged to competitors like Imeem and iLike.

Curiously, the Wall Street Journal is now veering wildly on its buyout estimate, reversing its assessment of a ‘fire sale’ to report a rather healthy purchase price.  “I was wrong,” Peter Kafka of Journal blog All Things Digital wrote, shifting from an earlier, $17 million assessment to a revised figure of $80 million.  But both figures were offered by ‘sources,’ essentially pitting the word of one group of informants against the other.

But TechCrunch is going with the smaller tag, specifically $17 million, enough to buy a front door seat in Google search results.  “LaLa was purchased for $17 million by Apple, according to our sources with indirect knowledge of the deal,” Michael Arrington relayed.  “And the company supposedly had $14 million in cash in the bank, meaning the actual purchase price was really $3 million.”

Report by Alexandra Osorio.