Apple has just officially confirmed that it has reached a deal to acquire renowned music discovery app, Shazam. This Shazam buyout by Apple is still pending regulatory approval, but sources are of the view that there shouldn’t be much delay in the formal takeover happening quite quickly.
Neither Apple, nor Shazam have confirmed details about the amount finalized for the Shazam buyout. But in our last coverage, we did talk about how the amount is being talked about at being around $400 million.
Snap, the mother company of Snapchat, and Spotify were learned to also have expressed their interest in being part of a Shazam buyout. Looks like Apple just got to the sealing the deal a lot quicker, probably by offering a larger sum of money the competitors just were not willing to put on the table.
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Here is the statement provided by Apple to TechCrunch.com:
“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.”
Valuation and Reality of the Shazam Buyout
Shazam was previously valued at $1 billion, which makes this deal even more surprising. The Shazam buyout by Apple doesn’t seem to have lived up to those valuations, making other startups of a similar nature more vulnerable to inflated values. There’s not doubt in Shazam having been around before even Apple launched the iPhone, but unlike Apple, the music discovery app just has not been able to grow their audience as much as they would have liked.
It makes sense for the Shazam buyout by Apple, especially since the iPhone maker is looking to expand on its music streaming services and really put up a battle against industry leaders like Spotify. Apple is believed to have been in talks with Shazam for the past half year or so, making this deal come around pretty quickly.
Shazam’s popularity is also highly referred to have been caused by the iPhone as well. This is because Shazam had been around on different platforms, seven years prior to the launching of the smartphone, but really getting a large following after becoming part of the iOS family. Apple is massively popular around the world and Shazam will really get that needed exposure now with this deal.
Apple could now be working towards integrating Shazam into their Apple Music service, improving the overall experience for current customers and opening up a reason for potential ones. Shazam is already integrated with Siri and will most probably be becoming a much larger part of iOS overall. The Shazam buyout by Apple could also mean a boost in improving its visual recognition through the use of augmented reality, but currently, there is no official word on what’s to come in the coming days.
The Shazam buyout may become official after regulatory approval as soon as the start of 2018.
What do you think about the Shazam buyout by Apple? Will Apple really take advantage of its services or just throw it under the carpet? Let us know your thoughts in the comments section below or on the official TechBizWeb.com Facebook page!