Apple will use Lala to reboot iTunes, putting more songs on the web.
After the purchase we heard from an industry source that Google purchased AdMob to keep it away from Apple. Apple wanted AdMob because it’s not making much money from free iPhone applications. (Though recently it started letting free apps to sell in-app virtual goods, which is generating a 30% cut for Apple.) It wanted to used AdMob’s technology to generate extra revenue.
Both Apple and Google have big piles of cash. Both are moving into each other’s territory more and more.
This might be the start of a mini-skirmish for small startups.
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