Convergence at work – Apple and Google square up

By December 11, 2009Apple, Google, Microsoft

Apple and Google have been edging into each other’s markets for some time now and post Apple’s acquisition of music streaming service Lala and the launch of YouTube’s VEVO service earlier this month they are now firmly head to head.  It won’t be long before an antipathy between the two companies builds – similar to the one they separately have with Microsoft.

According to AppleInsider Google was in talks with Lala before Apple sealed the $85m deal, a purchase which takes Apple into direct competition with music videos streamed from YouTube and now also songs streamed direct from Google’s search results.  The same post also reports rumours that Apple was attempting to acquire Admob before Google picked up the company for $750m last month.

Further, as you may have seen Eric Schmidt resigned from the Apple board back in August.

I guess this is another step in the maturation of the consumer tech industry as the leaders expand into new categories  as they seek to leverage their brands across as many categories as possible.  Apple has pushed from its hardware and software heritage to embrace content and advertising.  Google meanwhile started from an advertising base, added content before moving into mobile software and are now rumoured to be launching a mobile phone (something Marissa Mayer refused to deny at LeWeb earlier this week).

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  • So was it really a $85 million deal or just 17 (including 14 million cash), as TC reported? Because then the deal looks a lot more like a talent acquisition than a strategic buy.

    The article: http://www.techcrunch.com/2009/12/07/lala-was-b

  • Thanks, I hadn't seen that TC article. I don't know what the answer is but however you read it Apple and Google are looking more and more like out and out competitors.

  • yes, i completely agree on that – both are moving towards each other. I
    think it will be especially interesting to compare the different approaches
    of more closed vs. open innovation.

  • Good point. Winning with an open strategy will take patience as Apple wins the plaudits in the early days.

  • Good point. Winning with an open strategy will take patience as Apple wins the plaudits in the early days.

  • itunes will always rock. See Google have finally realized that Apple are on their own level of status in the market, they simply cannot beat them. Google would have to beat the iPod before touching anything else.