How Steve Jobs Buys a Company and Why Apple Bought Lala

jessica. said:

BTW, Steve Jobs is dead, in the ground, dead ... can we stop speaking of him as though he is alive and well and still buying up any companies?

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Amen to that, unfortunately as he was an incredibly wealthy famous person someone is always going to 'write a story' about him to make money of him.

And anyway this is NOT how he brought the company, this is how he made an offer the the other guy said yeah ok, lets not forget the all the 'other' people and the months of legal work, applications, approvals and authorities this would have had to of gone through before the 'deal was done'....

havent read all the linked articles because frankly the story that is posted here is as uninteresting as they come.

regarding lala and color what has apple actually gained from these two?

jamesnajera said:

1) Advertisers will eventually understand the returns for there investment in advertising with Google is not worth it and they will either not advertise on Google or pay less to advertise on Google.

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I think you've got some wong information.

I work in a small 100-person company in Denmark. We spend about €30.000/year on adwords - about 7€/conversion. Google Adwords has by far the best return on investment.

I'm pretty sure Google has this ad stuff figured out way better than anyone else.

MMOTotal said:

Just like that.. no fuss no mess. Here is a a number, take it or leave it.

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Given that he accepted the offer immediately, it must have been bigger than he ever had expected to receive.

Squilly said:

Chances are Google has more revenue & profits than Apple. They have a search engine, Android, RELIABLE Maps, etc.

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All which don't turn a profit. Their revenue source is ads. Yeah they may make a nickle or two from other things but nothing like their ad revenue, and even that is dying down.

12dylan34 said:

I always thought that the whole "write a number on a piece of paper" thing was just in movies. I guess that it reduces the shock of saying a huge number out loud?

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It is in movies - and you also see it in online feature stories about dead rich people.

But in real life? Not so much.

numlock said:

havent read all the linked articles because frankly the story that is posted here is as uninteresting as they come.

regarding lala and color what has apple actually gained from these two?

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Sometimes you buy companies to reduce your competition.

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unplugme71 said:

All which don't turn a profit. Their revenue source is ads. Yeah they may make a nickle or two from other things but nothing like their ad revenue, and even that is dying down.

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Seeing and hearing are two different senses. If people in government could see how much money they were spending, there would be a lot of cuts!

When you write a number down, it's more powerful.

I want the time I spent reading that refunded back to me..including the time it took me to make this post...

OrangeSVTguy said:

Yeah saying one hundred million doesn't sound too exciting in a spoken context. Seeing 100,000,000 written out with all those zeros is the wow factor.

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He had a range of numbers in mind. He had met with his accountants and executives and appraisers and everybody else for weeks ahead of time. He knew exactly what the company was worth.

And you think that seeing it written out in that form had "wow factor"?

Like he was surprised that it looked like that? Like it was freaking NEWS to him, finally revealed? Huh? Why would that be the case?

Squilly said:

Chances are Google has more revenue & profits than Apple. They have a search engine, Android, RELIABLE Maps, etc.

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"Chances" are? Thank goodness we live in a world where historical financial results aren't left to chance but are, you know, written down.

Here are the two companies Revenue graphed for the last few years.

And here is the same thing but for profit.

I'm not going to use that data to make an argument though, because the current arguments are silly. Still, this information is not hard to find, and shows how far off ones "perceptions" and chance taking can be.

nep61 said:

If Steve were alive, he'd be invited to sit with Obama to figure a way out of the Finacial mess this country is in..... He maybe couldn't fix it right away, but there would be some unique ideas thrown out there, I'd bet !

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The reason this country is in a financial mess is because people are "consumers". They spend money senselessly. Steve Jobs' products are part of the problem so I hardly see how he could be help the president resolve the country's financial issues. First on the list would be to stop buying expensive boutique items such as Apple products and Mr. Jobs wouldn't be too keen on that.

nep61 said:

If Steve were alive, he'd be invited to sit with Obama to figure a way out of the Finacial mess this country is in..... He maybe couldn't fix it right away, but there would be some unique ideas thrown out there, I'd bet !

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Nobody could turn a buck like Steve Jobs. Nobody.

did i read this correctly, apple bought lala because they were stealing profits from iTunes?

markcres said:

Before Apple got fat and rich they would have innovated their way out of the competition. Now they are lazy and just buy the smaller operators who are vastly more creative and innovative. They will only be able to do that for so long while their 'war chest' of wealth gets eroded- until they are forced to do something spectacular again. Apple and Steve are best when they really are foolish and hungry.....not fat and lazy.

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Seems to still be working for Cisco.

Squilly said:

Why are people quoting my message so much? So many quote notifications!

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*ahem*. That guy is me.

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Wow you came back to this thread. Have you learned anything yet?

HenryDJP said:

The reason this country is in a financial mess is because people are "consumers". They spend money senselessly. Steve Jobs' products are part of the problem so I hardly see how he could be help the president resolve the country's financial issues. First on the list would be to stop buying expensive boutique items such as Apple products and Mr. Jobs wouldn't be too keen on that.

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WRONG... the world revolves around credit... People borrow, banks lend... it actually works most of the time.... and did, up until about 2005 when people started using their houses like ATM machines....

Yeah, people sometimes buy things they don't need.... but Steve MIGHT have said to President Obama.... "STOP PRINTING MONEY !!! The more that's out there, the less it's worth.... Stop the handouts to people who can't pay it back" or something to that effect.

However, in an earlier post I added that was the reason I put a "MAYBE" and a SmileFace on this quote..... just a cute little quip was all it was supposed to be.

Yujenisis said:

Please explain.

I agree that without Google the Internet would be a very different, and arguably less useful place. Google revolutionized search and forced every other player to adapt or die.

Anyone else remember the smattering of search engines one used to employ for different types of searches before Google came along and changed everything? I do.

Still, I can't really see how a Google-less world would have any significant effect on Apple. Well, except without Google Microsoft might still be relevant and Apple fanboys would still be fighting Microsoft fanboys...

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Yes and I still use Dogpile and not Google

nep61 said:

WRONG... the world revolves around credit... People borrow, banks lend... it actually works most of the time.... and did, up until about 2005 when people started using their houses like ATM machines....

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Do you realize how ridiculous you're sounding here? This is EXACTLY why the country is in such a deficit, it's because people borrow too much and buy too much on credit and don't have the funds to pay it back which is why banks have declining revenue and people lose their homes. Newsflash, foreclosures have been going on for many years before 2005 and the country has been in a recession well over 10 years. I worked at a financial institution for a long time and I understand quite a bit on how the system is. You don't. You're WRONG.

Oh, and what do you think people do when they "borrow" the money? They spend it, as I said earlier.

crazy thread

Good article. Can say the same about the useless forum posts that follow.

We had our own dealings with Mr. Nguyen over at the woxy.com forums. The radio station was going out of business (again) and Nguyen blew in out of nowhere and bought the place. Kept it on the air for another few years with many promises of changing the way we listen to music and online radio. Never did any of that as it pertained to woxy.com, but Lala was a huge success. Shame he sold all his people out when he sold to Apple - who was just interested in squashing the competition. Shameful.

Phx08 said:

I want the time I spent reading that refunded back to me..including the time it took me to make this post...

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Hey, how about I write a number down on a piece of paper, and we agree and that's the end of it...


______

$0
______

budselectjr said:

becasue AAPL has 3x the amount of outstanding shares compaired to goog?

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that's not relevant. what's more valuable: a company with 500 shares that are selling for $1,000 per share? or a company with 750 shares that are selling for 150/sh? you've got a fundamental misunderstanding of business. sorry.

the initial post on this topic, comparing revenues and earnings, was on the right track, but he offered no numbers (and the numbers, I think, would upend his conclusion)

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Bubba Satori said:

Image

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whoa, my MBA just burst into flames...

Squilly said:

Oh please... Without Google, Apple is nothing.

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Without Apple, Android will be just a BlackBerry clone.

Squilly said:

Chances are Google has more revenue & profits than Apple. They have a search engine, Android, RELIABLE Maps, etc.

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Wrong on both counts. Yet, if you went to Google Finance you'd have never bothered to write such wishfulfillment.

Aside from the fact yearly gross revenues of Apple are $150 Billion in 2012 to well over $200 Billion for 2013, and will have around $140 Billion cash and long-term investments:

Apple's Total Debts to Assets: N/A
Google's Total Debts to Assets: 6.92 to 1

Apple's Total Debt to Equity: N/A
Google's Total Debt to Equity: 9.12 to 11

Previous Income Statement of each prior most recent Quarter:

Apple: $35.966 Billion
Google: $14.101 Billion

Apple Earning Guidance for this quarter to be disclosed Jan 23.

$52 Billion @ $11.75/share

Street Consensus:

$54.5 Billion @ $13.23/share

Gross Margins:

Apple: 40.04
Google: 53.92

Net Profit Margins:

Apple: 22.86
Google: 15.43

Employees:

Apple: 72,800
Google: 53,546

Besides the poor Net Profit Margin showing, nearly 1/3rd revenues, etc., Google has a very large employee count at much higher salary profiles [They don't have Retail] and these are three variables of unattractive long-term stability.

Apple gets more productivity out of less technical resources than Google [never mind superior hardware/software] and that will only expand over time.

Google's inevitable reality is what to do with Samsung regarding Android. Google will want to take sales from them while competing with Apple.

Expect once Samsung's wars with Apple tamps down that Google starts confronting their own partners in more direct competition.

Amazon has arrived and is really threatening Google where it should have invested in more: The Cloud. Enterprise Storage is Amazon's bread n' butter. It's owning Google.

Price War on Cloud Storage: http://www.forbes.com/sites/greatsp...-and-google-at-war-over-cloud-storage-prices/

Meanwhile, Apple can quietly expand its Data Centers for iCloud [multiple locations] and then come out and wow the audience with storage options for Mac customers no one expects.

astroturfme said:

Now that's *very* interesting if Google engages in deals with companies to favor natural search results placement (or is that for the sponsored)...humm.

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Lala's biggest strength was that it was at or near the top for many Google searches of particular songs, thanks to a search placement deal with Google.
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Yeah, that was the only interesting part of this article.

Jobs was a baller.