Apple confirms acquiring Shazam for reported $400m

Randall Craig
December 13, 2017

Apple Inc. issued a statement describing Shazam as "natural fit" with its services.

With the acquisition of Shazam, Apple will be able to embed its capability more deeply into Apple's music offerings.

"We are thrilled that Shazam and its talented team will be joining Apple", an Apple spokesperson told The Verge.

Multinational Tech giant Apple Inc, in one of its largest-ever acquisitions, announced that the company will be acquiring popular music-identification app Shazam, reportedly for $400 million.

But Shazam has struggled to find a way to make money off its technology, even as it said that it had reached one billion downloads on smartphones past year.

Apple did not reveal much about this acquisition and the Business model to run through Shazam, however as mentioned above, Apple will get benefits by selling out songs through Siri and other platforms. It already has an app for sharing songs via iMessage. Key sources suggest that Apple has been hiring AR talent and is secretly working on some kind of commercial release. "Today, it's used by hundreds of millions of people around the world, across multiple platforms". It's also in a postition to remove the app from rival Google Play, making it an iPhone only option. It is now unknown what the company plans to do with Shazam, only telling BuzzFeed "we have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement". So we are not sure about this deal and how Apple will generate the revenue from it.

Shazam only recently said it had become profitable thanks to advertising and to steering traffic to other sites such as Spotify and Apple Music.

Since its launch, Shazam has kept adding to its services.

Past reports suggest that Apple has been eying Shazam for years now, to use the technology for its own Augmented Reality initiative.

Apple will likely integrate Shazam with Siri, Apple Music, and iTunes to make its services more appealing to users and help them easily find new music.

Other reports by Ligue1talk

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