Apple confirms that it has acquired Shazam

13 December, 2017, 05:16 | Author: Randy Kelley
  • Credit Simon Dawson  Bloomberg

On Monday, Apple company issued a statement describing Shazam as Natural fit with its services.

"We are thrilled that Shazam and its talented team will be joining Apple", said Apple spokesperson Tom Neumayr.

Apple Buys Song-Recognition App Shazam Tech giant Apple is buying Shazam, an app that can identify songs playing near a user's phone.

The acquisition cost is far from the $1 billion Shazam was valued at during its last funding round, but the company has had a hard time finding a viable business model, pulling in only $54 million in revenue in 2016.

Shazam, which was founded in 1999 in the early age of online music, has struggled to find a way to make money from its technology, even as it said it reached one billion downloads on smartphones previous year. Shazam already works with the two companies and Apple, by directing users to the sites to listen to tracks after they're recognised on the app.

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"We have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement", it added. Key sources suggest that Apple has been hiring AR talent and is secretly working on some kind of commercial release. While the company has not revealed the financial terms of the deal, it is reportedly worth around $400 million. And once the app identifies the song, it will display all the information you need to know about the track, including artist info, sharing options, and other details.

"Spotify has made the discovery of new music front and centre of what makes it a compelling proposition", said Mark Mulligan, from the consultancy Midia Research.

Apple has had a long relationship with Shazam.

Apple and Shazam have had a friendly relationship for years, but the catalyst was that pending bid from Snap. It's also branched out into more marketing services based around visual recognition - essentially augmented reality plays where users can capture snaps of images that lead them to more content from a brand or another organization. But now the app is part of the Apple ecosystem, it's likely to find itself allied more closely to the Apple Music streaming service and iTunes.


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