Shazam! Apple is Buying the Music Recognition Service for $400 Million

10:28 12/12/2017

The phone-based music recognition service, Shazam, has been purchased outright by Apple AAPL  for approximately 400 million dollars. Shazam first launched in the U.K over 18 years ago as just a mobile phone app that lets you record any song and it will look up and reveal which song it is. At one point, Shazam was valued at $1 billion with raising over $143 million from investors.

Their efforts to expand past a music recognition service didn’t go so successfully has they launched a visual search in 2015, but failed to grab a lot of attention. The main thing keeping them afloat is their hit competitive reality TV show with Fox “Beat Shazam”. The show consists of contestants attempting to recognize the song being played quicker than the app. They just got renewed for a second season.

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

This is one of Apple’s AAPL  biggest deals to date as they usually stay away from big transaction deals and usually acquire smaller teams to build their own products. This deal is second to Apple’s $3 billion purchase of Beats Electronics in 2014.

Apple AAPL  said, “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.” Shazam has been downloaded over 1 billion times across multiple mobile platforms.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read