We have seen rumoured of the last few days that Apple is in the process of acquiring Shazam. Shazam is a London-based music and image recognition service and has been an early player in the music scene and has gradually grown into a monster of a company and works closely with both Apple and Spotify. Apple is not disclosing the price but we have several sources that have confirmed to us that the deal is in the region of $400 million.
Currently if a user records a music clips Shazam finds the song and gives the users the option to listen to the song on Apple Music or Spotify, however, the Deal could see Spotify forced out of the picture and direct users to Apple Music. Shazam had a post-money valuation in its last round of over $1 billion and a rumoured deal was being considered by Snap the company behind Snapchat which could be the reason behind Apple’s deal.
In a statement buzzed Apple says “We are thrilled that Shazam and its talented team will be joining Apple,” Apple spokesperson Tom Neumayr said in a statement to BuzzFeed News. “Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms.”
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users,” Neumayr continued. “We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”