There is another reason why Apple bought Lala: it didn’t want Google to buy it first! It sounds a little childish but billions are at stake and it is safe to say that the war between Apple and Google is just starting.

From Wall Street Journal

The twin pursuit of the start-ups reveal that the two tech titans have further plans to move deeper into each other’s business: Apple wanted to get into advertising, while Google sought a music service.

Google Inc. and Apple Inc., which have long thrived without treading on one another’s turf, are vying to acquire some of the same Silicon Valley start-ups and developing products that put themselves in more direct competition.

Google was in serious discussions to acquire online-music company La La Media Inc. before Apple won the deal this month for $85 million, people familiar with the matter said.

Apple also pursued a deal for mobile-advertising company AdMob Inc. say people familiar with the matter; Google agreed to buy the start-up in November for $750 million.

The relationship between the two companies has been heating up for quite a bit. First the resignation of Schmidt from Apple’s board, then the rejection of Google Voice from the App Store. More recently, Google snatched AdMob, the mobile advertising platform, from Apple. Now, Google is even entering the mobile market with its own device: the Google Phone.

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