AppleInsider reported latenight yesterday that Apple has reached agreement to buy Lala, the online music store and compact disc trading website company. It has been confirmed by the sources inside Apple.

Confirming earlier reports, sources inside Apple have confirmed that it has indeed acquired music streaming service Lala. The specific terms of the deal have not been released as of Friday evening.

According to reports by the New York Times, Lala had actively sought out Apple after Lala executives concluded that prospects for turning a profit in the short term were slim.

Lala allows its users to stream any song in its 8 million strong song library once, with the option for unlimited streaming at 10 cents per track and 79 cents for permanent MP3 download.

This acquisition would allow Apple to integrate full-song streaming into iTunes and opens up possibilities for Pandora-like streaming radio on anything that can run iTunes, including the iPhone, iPod Touch, and Mac systems.

[via AppleInsider]