Lala has posted a brief message to their website announcing that the service will shut down on May 31. The site will no longer be accepting new users.
This has sparked a flurry of speculation that Apple will be launching their own music streaming service shortly after Lala’s demise. However, none of these rumors seem to be based on anything other than the fact that they own Lala and it is shutting down.
I personally believe that Apple will launch a music streaming service at some point in the future. But I find it likely that Apple is simply moving resources away from Lala to ramp up development of their own service, not to launch it.