Expanding on its music portfolio, Apple is reportedly in the process of buying popular music recognition app, Shazam. According to sources, the buyout could end up going for as much as $400 million. TechCruch also reported the deal first a short while ago and regarded it as now being finalized.
An announcement of Apple officially taking over Shazam could be as soon as next week. Although, no official from either Shazam nor Apple have officially commented on or confirmed the news anywhere.
Shazam was officially founded back in 1999 and has raised over $100 million since 2002. Headquartered in the United Kingdom, Shazam has been around ever since smartphones took off in the early 2000s and has been quite popular in discovering music, movies and much more.
Just How Much is Shazam Valued At?
In October of 2016, Shazam released a report on how its mobile app had been downloaded more than a 1 billion times and more than 30 billion “Shazams”.
It is believed that Shazam had a valuation of $1 billion, which makes this offer quite a lot less than what Apple is reportedly buying it out for right now. Snap, the company behind Snapchat was also reportedly in the process to buy Shazam but it seems like they were not able to offer more than what Apple put on the table.
This move by Apple could also be regarded as one being to counter the competition from Spotify, which is closing in on launching an Initial Public Offering (IPO) to gather major funding and expand its operations.
If the acquisition goes as planned, the announcement may even be made as soon as this coming Monday. This won’t be the first or even last acquisition which Apple makes to increase its outreach into the music community. Apple bought out one of the world’s most popular headphone manufacturers, Beats, for a whopping $3 billion back in 2014.
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No official confirmation has been made on the aspect of what will happen to existing management at Shazam nor about its deals with Spotify. Shazam is also partnered with Snapchat at the moment, integrating its services into the camera screen.
This story about Apple possibly buying Shazam will continue to be updated as further information is released.
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What do you think about Apple taking over Shazam? Will it be a tactical move or just one which will force Apple to regret its decision? Let us know in the comments section below or on the official TechBizWeb.com Facebook Page!