Apple in advanced talks to buy Lala. Streaming music for iTunes UPDATE:DONE DEAL?

Update: Brad Stone of the NYTimes is reporting that it is a done deal.

According to Bloomberg, Apple is in advanced talks to buy online streaming music company Lala.

The terms of the deal for privately held Lala weren’t known. The people declined to be identified because talks are still in progress. Investors in Palo Alto, California-based Lala include Boston-based Bain Capital Ventures and Ignition Partners in Bellevue, Washington.

The Lala service, which debuted last year, lets users listen to any song on the site once for free. Customers can then opt to buy the track for 10 cents and listen to it on the Web. Lala offers access to more than 8 million songs, including material from EMI Music, Warner Music Group, Sony BMG Music Entertainment and Universal Music Group.

If true, the service would likely be integrated into iTunes which would gain a streaming and social media component.  Lala recently partnered with Google in their OneBox progect.

Here's TechCrunch's preview of the Lala Streaming iPhone App:

The move would likely be in response to growing competition from streaming music services like Spotify, Google's One Box for music and Myspace.