Apple to Acquire Shazam for $400 Million
- Author: Joey Payne Dec 10, 2017,
Dec 10, 2017, 2:25
Tech news website TechCrunch reported the talks earlier, writing that Apple could pay about $400 million for Shazam and that a deal could be signed as early as next week. According to its CEO, Shazam was one of the top ten most popular apps in the world in December 2013.
According to the Shazam, its app has been downloaded in 190 countries over 1 billion times. Sources also say that Apple was the most significant paying advertise for Shazam in the year 2016. For one, it could be integrated into the next version of iOS to identify songs on the go much like the Google Pixel 2 can, while the identification company's AR technology could also be used to improve ARKit. Shazam and Apple have had a partnership for a number of years that allows users of the app to purchase on iTunes, songs whose title they discovered using Shazam. It essentially directs the traffic from its app to these music streaming services by providing streaming links to a recently identified song.
The deal could be announced as soon as Monday. The company also lost approximately $22 million the year before that.
The makers of Shazam has created a revenue of $54 million in 2016 which will now be pulled by Apple after this deal. Users can scan Shazam codes, or QR codes, to launch 3D animations, product visualizations, mini-games and 360-degree videos.
The move would make sense for Apple on a few fronts.
Of course, nothing has been confirmed either by Apple or Shazam. "Shazam's early model - keyed by an SMS code and a behavior that was foreign to mobile users - would've been of no interest to Apple".