Apple has confirmed it’s in the final stages of acquiring Shazam, the London-based music and visual recognition startup.
Neither company has commented on financial details of the deal, though TechCrunch is reporting that the acquisition is valued at somewhere in the neighborhood of $400 million. For reference, in its last round of fundraising in 2015, Shazam was valued at $1 billion. Nonetheless, the move marks Apple’s second largest acquisition to date, behind its 2014 purchase of Beats Electronics for $3 billion.
Per Fortune sources, since 2008 the Shazam app has been downloaded more than 1 billion times. To the company’s credit, this is the result of tremendous strides made since then to expand its product offerings.
Beyond music, users can now employ the app to recognize a much more exhaustive list of content including movies, television shows, and ads. Further, just this past March the company announced its augmented reality platform. Not only did this translate into opportunities for marketers to be more creative with respect to brand storytelling, it also provided for heightened engagement through the perspective of the users via 3D animations, product visualizations, 360-degree videos, and more.
Apple spokesperson Tom Neumayr told BuzzFeed that the company views the union as a “natural fit, sharing a passion for music discovery and delivering great music experiences to our users.” Echoing much of the same sentiments, Shazam told The Verge, “we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users.”
So, why did Apple opt for Shazam? A recent Forbes article sheds light on the topic, discussing how Apple has a fantastic opportunity to utilize Shazam’s fundamental features to enhance currently offered services such as Apple Music and Siri. Additionally, Apple could rely on Shazam to help its efforts with respect to its ventures into the realm of AR. By the same token, Apple can help Shazam address the issue of monetizing its platform.
Cover image via The Daily Dot
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