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Apple in Early-Stage Negotiations to Acquire Spotify?

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TechCrunch reports that Apple and Swedish music streaming service Spotify have been engaging in very early-stage discussions about a possible acquisition by Apple. Discussions have apparently yet to progress beyond the feeling-out stage, however, with no firm offers on the table at this time.
"Apple, Inc. (AAPL) in negotiations to acquire Spotify," read the tip that came in yesterday via email from an anonymous source. Most tips are just outright false, but we dug into this one a little bit.

Here's what we heard - Apple and Spotify are in on again, off again discussions about an acquisition, but at best it's very early in the process. No firm price has been offered, no term sheet tabled. Still, it's interesting that the two are talking.
As recently as earlier this month, Apple had been rumored to be trying to torpedo Spotify's much-delayed U.S. launch by working to convince record labels that Spotify's business model would be a losing proposition for all involved in the digital music industry. The report was quickly followed by renewed claims of Apple developing its own music subscription service.

Today's report also interestingly notes that Spotify and Google nearly agreed on a $1 billion acquisition deal, but that agreement fell apart over Spotify's demands for an $800 million "walk away fee" that would be paid by Google if the deal fell through after signing and Google's demands that all of Spotify's existing deals with record labels be carried over to the Google-owned Spotify, a provision that was not present in Spotify's deals with the labels.

Spotify would not be the first company to be an acquisition target for both Apple and Google. Apple had reportedly considered purchasing mobile advertising firm AdMob late last year before Google swept in with its own offer. Apple quickly responded by snatching music streaming firm Lala Media away from Google before picking up Quattro Wireless as its second-choice ad firm that it converted to support the company's new iAd platform.

Apple's growing war chest of over $50 billion has been the source of increasing speculation regarding potential acquisitions, with Apple CEO Steve Jobs noting during the company's earnings conference call last week that Apple believes one or more strategic opportunities will present themselves, and the company will be well-positioned financially to take advantage of those opportunities.

Article Link: Apple in Early-Stage Negotiations to Acquire Spotify?
 

Sky Blue

Guest
Jan 8, 2005
6,856
10
Between Spotify and Lala Apple are really turning to bludgeon these streaming services out of existence.
 
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Don Kosak

macrumors 6502a
Mar 12, 2010
860
4
Hilo, Hawaii
Music streaming makes a lot of sense for Apple.

The big hold up is going to be getting the Record Labels to approve streaming in the US and elsewhere.
 
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Joe-Diver

macrumors 6502
Aug 2, 2009
265
0
Between Spotify and Lala Apple are really turning to bludgeon these streaming services out of existence.

Or use that massive new data center complex and be the new streaming content provider for everything.
 
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acidfast7

macrumors 65816
Nov 22, 2008
1,437
5
EU
:(

I'd loved free spotify when it first came out.

I cannot see this ending well for Spotify.
 
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KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
I can already see a lot of retractions in this thread. A lot of the most devout Apple followers had completely destroyed spotify, some even comparing it to pirating , in the last thread. Now that Apple is rumored to want the service, these people are going to be calling it innovative :rolleyes:
 
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rdowns

macrumors Penryn
Jul 11, 2003
27,397
12,512
Sony, Spotify, I can see the confusion. :rolleyes:

This is the type of acquisition that Apple does.
 
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weckart

macrumors 603
Nov 7, 2004
5,171
2,536
Oh, poo! Another good thing bites the dust. Why can't we have nice things?
 
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kernkraft

macrumors 68020
Jun 25, 2009
2,456
1
Bugger! This is the worst news this week in the world of music and tech. Even suggestions that Apple Inc would buy a REALLY innovating company in music distribution kicks my stomach and make me run for my life with Spotify.

Don't buy out your way from this overcharging situation, Apple! Do the decent thing and try to compete!
 
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Chupa Chupa

macrumors G5
Jul 16, 2002
14,834
7,394
Wonder if the EU would put the kibosh on a deal given EU's sharp antitrust tack and the likelihood Apple would buy to shut it down.
 
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