Apple eyeing Shazam acquisition worth $400 million

Marlene Weaver
December 9, 2017

Apple Music integrated with Shazam?

Now, it would appear that YouTube has even more catching up to do, as Apple is reportedly in the final stages of acquiring the music recognition app Shazam for the small sum of $400 million.

The Shazam app uses the microphone on a smartphone to identify nearly any song playing nearby.

TechCrunch first reported on the pending deal.

In September previous year, Shazam - which also identifies TV shows, films and advertisements - hit 1 billion downloads and had for the first time achieved profitability, thanks largely to revenue from advertisers. The 18-year-old company was valued at about $1 billion when it closed its last funding round in 2015. The company, which has been around since 1999, boasted that it broke the one billion download barrier in 2016, making it one of the most popular mobile apps in the world. Last year, they only made $54 million and lost $5.3 million.

An Apple-Shazam merger would also most certainly hurt competitors such as Google Play Music and Spotify, the latter of which has an existing partnership with Shazam.

It also has an augmented reality brand marketing service lets you discover content based on pictures that you snap with the app.

Of course, nothing has been confirmed either by Apple or Shazam.

Apple would obviously want to use Shazam to bolster its music business - and drive sales and subscriptions from users who "Shazam" songs. A Shazam representative did not immediately respond to a request for comment.

Other reports by Insurance News

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