Tech giant Apple is buying Shazam, an app that can identify songs playing near a user's phone. When asking Siri to identify a song, the assistant pulls up the result through the help of Shazam.
So, why has Apple confirmed it is "combining" its business with that of the smaller London company?
This marks yet another music-related acquisition for Apple, after acquiring the Beats brand (in the form of Beats Music and Beats Electronics) back in 2014 for $3 billion and the TV show, Carpool Karaoke, last year.
Through all of this, Shazam has developed some interesting partnerships, specifically with Apple and Spotify (who together get around 1 million referrals each month via Shazam), and Snapchat, which now has an integration with Shazam where Snapchat users can "recognize music, engage with Shazam content, and send their music and artist discoveries as Snaps to their friends". Further, Apple seems to have interest in Shazam's visual recognition engine and augmented reality technology as well.
"We can't imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users", Shazam cited in a separate statement. Apple has not disclosed the price, but multiple reports suggest that the company has bought the application for $400 million.
Apple has acquired Shazam, the company announced today.
An article published on the Verge says that Shazam can help Apple in a number of ways despite its low revenues. Shazam's employees can provide a much-needed boost to Apple's effort to catch up with its rivals, all while providing a short-term bump to Apple Music.
Shazam in November had around 175 million monthly active users across the world from iOS and Android, with a market of 20 million users in the United States and 4 million in the UK. The first that comes to mind is making things easier with Apple Music, enabling an even deeper integration and improving the overall experience.