Shazam! Apple to acquire music naming app for $400 Million?

Muriel Hammond
December 10, 2017

The most obvious benefit of owing Shazam for Apple would be the firm's awesome music and sound recognition technologies. Later that year, it arrived on Android, and it has continued to maintain a strong userbase.

Now, it would appear that YouTube has even more catching up to do, as Apple is reportedly in the final stages of acquiring the music recognition app Shazam for the small sum of $400 million.

The Shazam app has been downloaded over 1 billion times. Apple, for one, is known for its timely acquisitions, and this time, it's eyeing one of the most popular services to boost its music interests.

The Shazam app uses the microphone on a smartphone to identify nearly any song playing nearby. It can integrate with other apps like SNAPCHAT and APPLE's Siri, and it now sends considerable traffic to SPOTIFY and APPLE MUSIC, which pays it when those clicks convert to purchases.

The deal could be announced as soon as Monday.

Shazam generated about $US54 million in revenue in 2016. (Spotify does the same thing.) Apple may want to pull that whole process into Apple Music.

But the price TechCrunch reported may disappoint those investors, as it would fall far below Shazam's most recent $1 billion valuation reported by PitchBook. It is not clear what will turn out of this acquisition, but it will definitely serve as value addition to Apple Music and company's augmented reality efforts. "Shazam's early model - keyed by an SMS code and a behavior that was foreign to mobile users - would've been of no interest to Apple".

Apple is making another big move this year. If you're unfamiliar, Shazam's AR platform lets you scan objects to be presented with things like 360-degree videos and 3D animations right on your phone's screen.

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