Give me some of whatever you're smoking. Talk about assuming/hoping for the best. The conversation probably went more like this "Lala is doing what we want to do, let's buy them and shut that shit down so we can offer our own overpriced solution".
More like "Lala is doing something we want to do, I can't become profitable, let's buy them cheaply for their existing work and engineering team and shut them down so we can offer our own solution that can make money."
People are mad at Apple for shutting LaLa down when it was clear LaLa was not a capable of functioning as a profitable venture in the format the founders pivoted to.
Online music is glamorous; yet, not that profitable and few ways to differentiate your business.