Apple beat Google to Lala deal after failed bid for AdMob - report

Posted:
in General Discussion edited January 2014
Google was in serous discussions with music streaming service Lala before it was sold to Apple earlier this month.



Google and Apple have been battling to purchase some of the same companies in an attempt to gain leverage in the highly competitive tech sector. According to the Wall Street Journal, Google had been in serious talks with online music streaming company La La Media Inc. before Apple closed the $85 million deal earlier this month.



In November, Google purchased mobile advertiser AdMob Inc. for $750 million in a deal that trumped Apple's rumored attempts at acquiring the company. The Wall Street Journal's sources indicate Apple wanted to acquire AdMob as a defensive tactic to keep Google from obtaining inside knowledge about the workings of the App Store.



Both companies find themselves growing in ways that have begun to overlap with each other, creating competition where none had existed before. As Google has branched out from search to become a player in the mobile, desktop, and media arenas - Apple has grown from a hardware and software company into a content provider and mobile powerhouse.



The companies have become so competitive that Google's CEO Eric Schmidt resigned from Apple's Board of Directors in August. At that time Apple CEO Steve Jobs commented, "Unfortunately, as Google enters more of Apple's core businesses, with Android and now Chrome OS, Eric's effectiveness as an Apple Board member will be significantly diminished since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest."



Both Google and Apple are awash in cash, with $22 and $34 billion respectively, meaning that both have the resources to continue to compete over promising new technologies and companies that would bolster their positions in the market.



The WSJ reports, "More acquisitions could be in the works as Silicon Valley deal making heats up overall. As the worst of the recession appears to have passed, tech companies are eager to pick up promising technologies before prices climb."
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Comments

  • Reply 1 of 48
    It's just a matter of time before Apple enters the search business, and then it will be a full-blown official war between these two. How quickly times can change. One day they are the best of friends, and the next they couldn't have a bigger enemy.
  • Reply 2 of 48
    Quote:
    Originally Posted by hittrj01 View Post


    It's just a matter of time before Apple enters the search business, and then it will be a full-blown official war between these two. How quickly times can change. One day they are the best of friends, and the next they couldn't have a bigger enemy.



    The perception that Apple and Google were the best of friends has always been a fallacy.



    They were allies against bigger players. No more, no less.
  • Reply 3 of 48
    and in Microsoft news, they're just as stagnant as the economy. Hopefully, we'll be seeing some cool stuff come out of the Lala purchase.
  • Reply 4 of 48
    Quote:
    Originally Posted by nofear1az View Post


    and in Microsoft news, they're just as stagnant as the economy. Hopefully, we'll be seeing some cool stuff come out of the Lala purchase.



    They can barely get their core (in)competency right, never mind other markets.
  • Reply 5 of 48
    Quote:
    Originally Posted by Quadra 610 View Post


    They can barely get their core (in)competency right, never mind other markets.



    Maybe Apple and MS.. Sorry, Ballmer, will team up to "kill google"
  • Reply 6 of 48
    Quote:
    Originally Posted by mdriftmeyer View Post


    The perception that Apple and Google were the best of friends has always been a fallacy.



    They were allies against bigger players. No more, no less.



    Apple isn't stupid enough to go up against Google, nor do they have to.



    Ballmer on the other hand, sees Apple's and Google's business models apparently garner them money, so he tries to copy them and leverage his monopoly on the desktop (which is failing) to try and be competitive, miserably.
  • Reply 7 of 48
    Quote:
    Originally Posted by sprockkets View Post


    Apple isn't stupid enough to go up against Google, nor do they have to.



    Ballmer on the other hand, sees Apple's and Google's business models apparently garner them money, so he tries to copy them and leverage his monopoly on the desktop (which is failing) to try and be competitive, miserably.



    Why wouldn't Apple go up against Google?



    The way I see it, I think Apple should make their OWN search engine and make it better than google and bing combined.



    Mr. Jobs has a habit of seeing something, and making it 10x better. If I was him right now, I would do this:



    1. Ban ads inside apps and use the excuse "We take 30% of all profits from paid apps, if they are free than we don't get any money". That will kill Google's investment in AdMob before they even profit from it.

    2. Use Lala's music streaming to let people access their music from the cloud without needing to download and sync it everywhere.

    3. Make our own search engine that has better features than other search engines. Use it to search iTunes too for music (something Google and MS can't compete with).

    4. Look into technology that would be helpful to Google, and then buy it before they can.
  • Reply 8 of 48
    addaboxaddabox Posts: 12,665member
    Quote:

    In November, Google purchased mobile advertiser AdMob Inc. for $750 million in a deal that trumped Apple's rumored attempts at acquiring the company. The Wall Street Journal's sources indicate Apple wanted to acquire AdMob as a defensive tactic to keep Google from obtaining inside knowledge about the workings of the App Store.



    Three quarters of a billion dollars just to keep Google from getting "inside knowledge about the workings of the App Store"? I'm sorry, that doesn't sound very plausible.
  • Reply 9 of 48
    mactelmactel Posts: 1,275member
    Quote:
    Originally Posted by hittrj01 View Post


    It's just a matter of time before Apple enters the search business, and then it will be a full-blown official war between these two. How quickly times can change. One day they are the best of friends, and the next they couldn't have a bigger enemy.



    They are frienemies.



    Apple won't ever enter search as you know it today. If you own the largest app and music store you have a means for making money on ads. I'm surprised Apple hasn't turned some coin on the iTMS as of yet with ads. Maybe the Lala deal will help with that.



    I'm sure Eric was privy to Apple's acquisition list and ran off with it.
  • Reply 10 of 48
    Quote:
    Originally Posted by addabox View Post


    Three quarters of a billion dollars just to keep Google from getting "inside knowledge about the workings of the App Store"? I'm sorry, that doesn't sound very plausible.



    I agree. And how would acquiring Admob even do that?
  • Reply 11 of 48
    Quote:
    Originally Posted by addabox View Post


    Three quarters of a billion dollars just to keep Google from getting "inside knowledge about the workings of the App Store"? I'm sorry, that doesn't sound very plausible.



    Why not? Apple's worth ~$180B, and the iPhone/Touch is a huge piece of that.



    What do you think the App Store might be worth? My guess: many multiples of $750M. It's like saying that I would spend $1 to save, say, $2 in (even uncertain) value.
  • Reply 12 of 48
    addaboxaddabox Posts: 12,665member
    Quote:
    Originally Posted by anantksundaram View Post


    Why not? Apple's worth ~$180B, and the iPhone/Touch is a huge piece of that.



    What do you think the App Store might be worth? My guess: many multiples of $750M. It's like saying that I would spend $1 to save, say, $2 in (even uncertain) value.



    Yeah, but we're not talking about the App Store IP, we're talking about AdMob, which at best would have had tangential info. Maybe Apple should start buying music labels, just in case?
  • Reply 13 of 48
    Quote:
    Originally Posted by addabox View Post


    Yeah, but we're not talking about the App Store IP, we're talking about AdMob, which at best would have had tangential info.



    OK. Perhaps I don't fully understand the link between AdMob and the App Store then.



    What does/did AdMob do, anyway?
  • Reply 14 of 48
    Quote:
    Originally Posted by Neotyguy40 View Post


    Why wouldn't Apple go up against Google?



    The way I see it, I think Apple should make their OWN search engine and make it better than google and bing combined.



    Mr. Jobs has a habit of seeing something, and making it 10x better. If I was him right now, I would do this:



    1. Ban ads inside apps and use the excuse "We take 30% of all profits from paid apps, if they are free than we don't get any money". That will kill Google's investment in AdMob before they even profit from it.

    2. Use Lala's music streaming to let people access their music from the cloud without needing to download and sync it everywhere.

    3. Make our own search engine that has better features than other search engines. Use it to search iTunes too for music (something Google and MS can't compete with).

    4. Look into technology that would be helpful to Google, and then buy it before they can.



    You know how people say it's too late to overtake the ipod ecosystem? Think that about Google when it comes to search.
  • Reply 15 of 48
    Quote:
    Originally Posted by hittrj01 View Post


    It's just a matter of time before Apple enters the search business, and then it will be a full-blown official war between these two. How quickly times can change. One day they are the best of friends, and the next they couldn't have a bigger enemy.



    Apple has had 30 years to make even the slightest attempt at it and haven't.



    They have failed with every Browser that they have introduced to the market.



    Apple knows nothing about search engines, browsers or the cloud.



    When a product fails you rebrand it. Thus the introduction of the .Mac still failing as MobileMe and now moving to the Internet under yet another new REBRANDING of Apple's cloud.



    Enter Google. They have their hands in everything that Apple does and a thousand other projects.



    Steve Jobs was a sucker if he believed that Google ever wanted anything but domination and control of the market.
  • Reply 16 of 48
    Quote:
    Originally Posted by anantksundaram View Post


    Why not? Apple's worth ~$180B, and the iPhone/Touch is a huge piece of that.



    What do you think the App Store might be worth? My guess: many multiples of $750M. It's like saying that I would spend $1 to save, say, $2 in (even uncertain) value.



    This article is comparing Apple's to Oranges. AdMob was for Google to get more revenue from internet advertising.



    Apple purchased LaLa at an attempt to enter the streaming music cloud arena because Google has just signed a partnership with them.



    Read more than this room and you'd have a clue to the bigger picture.



    Apple is betting all their eggs on the Tablet. If it fails then the stock will tank. This is the reason Apple can't break through the 210 barrier for it's stock.



    Everyone is waiting
  • Reply 17 of 48
    mac_dogmac_dog Posts: 1,075member
    Quote:
    Originally Posted by mdriftmeyer View Post


    They were allies against bigger players. No more, no less.



    you mean like the big box religions?--sorry, couldn't resist--wrong forum.
  • Reply 18 of 48
    Quote:
    Originally Posted by hittrj01 View Post


    It's just a matter of time before Apple enters the search business, and then it will be a full-blown official war between these two. How quickly times can change. One day they are the best of friends, and the next they couldn't have a bigger enemy.



    Apple hasn't got the first clue how to do search. Have you ever tried to find a technical support document by searching on apple.com? It's so bad that I go to google and do the same search in order to find where Apple is hiding the information.



    Big tech firms are like imperial age European nations constantly shifting alliances in an effort to prevent any one from getting too strong. Today the battle is against Microsoft, but the allies are watching each other for signs that they intend to take over the role of conquering despot. Apple and Google are coming at this from different angles just like England (navy) and Prussia (army) did when they took on Napoleon. History tells us that less than a century later those allies were on opposite sides of the trenches. It's only a matter of time before Microsoft is reduced to a spectator in the great war between the hardware company and the internet software company.
  • Reply 19 of 48
    addaboxaddabox Posts: 12,665member
    Quote:
    Originally Posted by anantksundaram View Post


    OK. Perhaps I don't fully understand the link between AdMob and the App Store then.



    What does/did AdMob do, anyway?



    Two things, mainly, AFAIK-- infrastructure for mobile advertising, and analytics of same. It's not even clear to me what they would have to do with iTunes.
  • Reply 20 of 48
    Quote:
    Originally Posted by anantksundaram View Post


    OK. Perhaps I don't fully understand the link between AdMob and the App Store then.



    What does/did AdMob do, anyway?



    AdMob provides advertising in applications, notably iPhone Apps. AdMob can tell what applications sell, how often they are used, where people are using them... everything. That gives them a lot of insight into Apple's AppStore business.



    With Google having this information, they can figure out how to best use resources on developing new apps, and marketing them.
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