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m3n4.net October 18, 2018


Apple reportedly may buy music identifying app Shazam for $400M

09 December 2017, 06:39 | Antoinette Holland

Apple Music integrated with Shazam?

The deal could be worth around $400 million (so not much for Apple) and announced as soon as next week.

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

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The technology news site, quoting unnamed sources, said that the deal could be announced Monday with financial terms not yet clear.

FT has also confirmed the story.

Shazam is the music discovery app that enables a smartphone owner to identify just about any song simply by tapping a button and holding their phone within listening range of the audio. If the rumor is true, the company has lost 60% of its value in two years.

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Buying out Shazam would also rid Apple of having to pay Shazam for click-throughs to iTunes purchases like it does now. The London-based company boasts more than 100 million monthly users, and hit one billion total downloads previous year. One source puts the price of the acquisition around US$401 million, although Shazam was once valued at US$1 billion dollars. The company also lost approximately $22 million the year before that. In 2016, the company added a new augmented reality feature, allowing users to scan branded Shazam codes to unlock deals and games on the app.

Apple has made dozens of other acquisitions, and one of the biggest has been in the area of music: it acquired Beats for $3 billion in 2014, which became the basis for Apple Music. That's about half the 60 million paid subscribers that Spotify now enjoys.

Reps for Apple and Shazam did not immediately respond to requests for comment.

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