TechCrunch said the deal was already inked last week and will be announced anytime today (Monday) or any day this week.
Shazam’s app allows users to identify any song, TV show, movie or advertisement by listening to a snippet or teaser – in the case of a movie or TV show – then the user is shown related content.
Purchase Price Is Much Lower Than the Value of the Company
Apple’s purchase price for Shazam is much lower than the company’s value, which PitchBook placed at $1.02 billion after its last fundraising in 2015.
Emil Protalinski of Venturebeat.com believes that Apple’s acquisition of Shazam “is all about making Siri” a cut above its competitors in the digital assistant market – Alexa and Google Home.
100M Monthly Users
Shazam was established in 1999 and has more than 100 million monthly users. BBC said Shazam earns mostly from commissions paid on referrals to iTunes.
With regard downloads, Shazam said in September last year that it passed one billion and that number would most likely be higher by now.
Over the 18 years it has been operating, Reuters and TechCrunch reported that Shazam had raised $143.5 million from London’s DN Capital Limited, Institutional Venture Partners (IVP), Kleiner Perkins Caufield & Byers as well as Sony Music, Universal Music and Warner Music owner – Access Industries.
Effort to Improve Apple Music’s Standing
Reuters said Apple’s purchase of Shazam could bolster the company’s thrust to make it easier for users to find songs and add them to playlists in Apple Music, which had 27 million subscribers as of mid-2017, far behind Spotify’s 60 million users.
Early this year, Shazam announced that its subscribers could use of all of its features on Snapchat.
Apple is set to buy Shazam to utilize its music identification technology in its devices, particularly in Siri.
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