Mr. Um also tied the purchase into Apple’s data center development in North Carolina, writing, “We believe the Lala acquisition fits into our view that Apple is building a data center for a service to provide seamless access and mobility of digital content across all its products including media-focused content of iTunes and user-generated content of MobileMe.”
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Reports that Apple was buying the online service surfaced Friday afternoon, with several mainstream news outlets piling on throughout the day. After not commenting to Bloomberg and issuing a non-denial to The New York Times on Friday, Apple finally confirmed the news over the weekend.
Lala is, in some ways, a competitor to Apple’s own iTunes Store, but the company has also developed services such as Web-only song purchases for $.10 and the ability to access music already on your hard drive through Lala, bringing your Lala purchases and existing music library together through a browser.
Mr. Um reiterated his price target of $280 per share for AAPL, and his “Buy” rating. The markets, however, are so far having none of it, and have continued Apple’s recent sell-off. As of this writing, Apple was trading at $190.58, down $2.74 (-1.42%), on moderately strong volume.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
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