Apple in talks to buy Shazam for $560m
- Author: Fernando Stephens Dec 09, 2017,
Dec 09, 2017, 6:38
A lot of SHAZAM's offerings dovetails with what APPLE is already working on already. 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.
A deal for the app, which identifies songs and other media by matching its soundwaves to a large database, is expected to be announced by Monday. No plans were given as to how Apple could turn things away, but implementation into the latter company's platforms could be a start.
The company was last valued at over $1 billion, according to PitchBook, rendering Apple's purchase price of $400 million a significant discount.
But in the world of apps, high numbers do not always translate into profits: In September 2017, reported $54 million in revenues in its 2016 fiscal year, which was a turnaround from the declines between FY 2014 and 2015. Shazam has also been exploring ways to leverage augmented reality (AR) technology to connect users to content, and we all know how Tim Cook feels about AR.
Though competing services have surfaced over the years, Shazam arguably remains king when it comes to music discovery, a fact highlighted by its more than 1 billion downloads.
The move makes ideal sense for Apple as it looks to boost its own Apple Music streaming service, which is already linked to from within Shazam. Shazam's features are also integrated with Apple's Siri voice assistant.