BUSINESS

APPLE OFFICIALLY BUYS SHAZAM IN $400M DEAL

Shazam joins Apple as of December 11, 2017

IT’S OFFICIAL:

Apple has acquired music identification platform Shazam in what’s believed to be a $400 million deal. This will be one of the largest acquisitions ever for Apple. Apple’s last major acquisition occurred in 2014 when it acquired Beats Music for $3 billion.Apple

As announced by Apple in a statement today (December 11):

We are thrilled that Shazam and its talented team will be joining Apple. 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. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.

Shazam has also released a statement regarding the acquisition:

We are excited to announce that Shazam has entered into an agreement to become part of Apple. Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users.

NAME ANY SONG IN SECONDS

Founded in 1999, UK- born app Shazam uses the microphone on a smartphone or computer to identify almost any track playing nearby.  Once Shazam identifies a track, the user is directed to a website where they can listen to or purchase the song. Shazam diversified the scope of its services to also identify movies, TV shows and commercials from short audio clips. In 2014, Shazam was first integrated into Apple’s Siri. This enabled users to ask Siri what song is playing in the background. In 2016, there were over one billion downloads of  Shazam. Despite its popularity, Shazam has experienced trouble monetizing as a standalone product.

BOOSTING APPLE MUSIC

The acquisition of Shazam will help Apple to further diversify their music streaming services. This comes in addition to personal assistant Siri. Furthermore, the company plans to release a new line of smart speakers in 2018. Despite the new improvements for Apple users, the selling point comes as a disappointment to some of Shazam Entertainment investors.  Many of them valued the company at approximately $1 billion at the end of the last funding round in 2015. Although revenue was low for Shazam, the future of Apple Music has much to gain from the advancement of this deal.

 

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