Apple Likely Acquired Cloud-Based Music Provider Omnifone [Updated]

One of Apple's latest acquisitions appears to be cloud-based music provider and Omnifone, according to an inside source that shared knowledge of the purchase with MacRumors. Earlier this month, a Music Ally report suggested UK-based Omnifone's tech business and assets had been purchased by a mystery buyer for $10 million, and it seems that buyer is Apple.

According to documents covering the sale, Omnifone's alluring patent portfolio was not purchased by Apple, nor were debts or investments, but terms included a "royalty bearing license" that Omnifone says will help it determine the value of its full range of patents. Omnifone has a number of patents relating to downloading music, digital rights management, and generating recommendations that are potentially appealing to streaming music companies.

omnifone
Omnifone operated a cloud platform powering its own MusicStation service and serving as the backbone for music services launched through partnerships with mobile carriers like LG, Samsung, Vodafone, BlackBerry, Sony, and more.

Omnifone, for example, powered Samsung's Milk music service in certain locations and it was licensed by PonoMusic to power the PonoMusic Store, which is temporarily unavailable as of today following Apple's purchase of Omnifone. Following its acquisition, Omnifone has abruptly ended all of its partnerships.

One of our key infrastructure partners - Omnifone - has recently been acquired by a large company. An impact of this purchase is that all Omnifone's supply relationships are being terminated, effectively immediately. Omnifone has been the exclusive content provider for PonoMusic.

Omnifone was placed into administration in May after it became clear the company could no longer pay its debts following the loss of clients like Sony and BlackBerry when Music Unlimited and BBM Music were shuttered. A total of 71 staff members were laid off as it sought a buyer for its technology assets.

Apple was believed to be interested in Omnifone's assets early on, with sources in May telling Music Ally Apple would make the purchase.

Update: The Loop's Jim Dalrymple says that according to his sources, Apple did not purchase Omnifone.

Top Rated Comments

Dilster3k Avatar
100 months ago
That moment you can't make $^#t anymore and resort to buying junk like Beats, etc. & this, to keep the train wreck going.
Score: 7 Votes (Like | Disagree)
djcerla Avatar
100 months ago
That moment you can't make $^#t anymore and resort to buying junk like Beats, etc. & this, to keep the train wreck going.
Beats was an excellent acquisition, at the right price.

The "train wreck" will be market leader by 2018.
Score: 4 Votes (Like | Disagree)
ArcaneDevice Avatar
100 months ago
That moment you can't make $^#t anymore and resort to buying junk like Beats, etc. & this, to keep the train wreck going.
Apple has always done this. The first iTunes was software from another company they purchased and rebranded.

Apple users tend to forget that a lot of Apple software since the return of Jobs has been the result of buying ideas from other companies.
Score: 3 Votes (Like | Disagree)
Rogifan Avatar
100 months ago
Jim Dalrymple says no.

http://www.loopinsight.com/2016/07/20/apple-did-not-buy-cloud-based-music-provider-omnifone/
Score: 3 Votes (Like | Disagree)
hlfway2anywhere Avatar
100 months ago
All I want are collaborative playlists and browser-based access to my music.
Score: 3 Votes (Like | Disagree)
Michael Scrip Avatar
100 months ago
Apple has always done this. The first iTunes was software from another company they purchased and rebranded.

Apple users tend to forget that a lot of Apple software since the return of Jobs has been the result of buying ideas from other companies.
Exactly. And it's not just Apple. Lots of companies do this.

Some of the biggest software/service products we use today came from somewhere else.

Google acquired at least 8 companies to make Google Maps, for instance.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...