Apple may acquire Shazam and announce it on Monday
- Author: Latoya Cobb Dec 09, 2017,
Dec 09, 2017, 6:38
The Shazam app uses the microphone on a smartphone to identify nearly any song playing nearby.
FT has also confirmed the story.
In the tech and music worlds, speculation has proliferated on the possible motives for Apple to buy the company, especially as the technology behind the app's song-identification is reportedly easy to replicate nowadays.
Buying out Shazam would also rid Apple of having to pay Shazam for click-throughs to iTunes purchases like it does now.
First launched in 1999, Shazam has grown significantly over the last several years. Shazam says that its app has been downloaded in 190 countries over 1 billion times. Notably, though, the numbers we've heard are lower than the $1.02 billion (according to PitchBook) post-money valuation the company had in its last funding round, in 2015. The company also lost approximately $22 million the year before that.
Things get interesting with Shazam app, as it integrates augmented reality feature to find content based on pictures captured using the app. That said, the acquisition makes sense as the platform already drives users to Apple Music and is compatible with Siri.
Apple might be adding another notch onto its acquisition belt.
Whether Apple would continue to allow Shazam to link out to other streaming options like Spotify and YouTube remains to be seen.