Apple Inc is in talks to acquire Shazam Entertainment Ltd, whose software helps users identify songs by pointing their phone at an audio source, according to a person familiar with the situation. Later that year, it arrived on Android, and it has continued to maintain a strong userbase.
Apple is nearing a deal to buy music recognition app Shazam at a valuation in the hundreds of millions of dollars, several outlets reported Friday.
Do you think Shazam will remain a standalone app or be subsumed into Apple's ecosystem?
Shazam last noted that it passed 1 billion downloads, but that was back in September 2016, meaning those numbers are likely higher now. Shazam has raised $143 million since 2002, and finally made a profit of $54 million past year due to advertising revenues. That sort of scale is highly attractive to Apple, which could look to integrate it into its Apple Music service, as it's done with Siri already. Apple's AI uses Shazam to identify it.
It will be interesting to see how Apple implements Shazam into Apple Music and how it'll affect the Spotify integration within the core Shazam app since Spotify is Apple's biggest music streaming rival right now.
Shazam generated about $US54 million in revenue in 2016.
Now, Shazam is about to become the property of Apple. (Spotify does the same thing.) Apple may want to pull that whole process into Apple Music. With AR, Shazam lets users scan all sorts of stuff, such as magazines, posters, books, and even products themselves to launch 3D animations, 360-degree content, and much more. Last year, they only made $54 million and lost $5.3 million.
The price was not known, but was expected to be far less than the $1 billion that Shazam was valued at in its most recent fund-raising round in 2015.
The move would make sense for Apple on a few fronts.