Apple to acquire Shazam for around $400m, says report
- Author: Toni Ryan Dec 10, 2017,
Dec 10, 2017, 2:27
Later that year, it arrived on Android, and it has continued to maintain a strong userbase.
Do you think Shazam will remain a standalone app or be subsumed into Apple's ecosystem?
Launched in 1999 as an SMS code service, Shazam reportedly made $54 million in revenues in the fiscal year 2016.
It's also possible that Apple wants Shazam to integrate the app's offerings more deeply into its mobile operating system, in which case Shazam might disappear as a standalone app.More news: CBS Cancels Jeremy Piven Show Amid Sexual Assault Allegations
Shazam has already integrated with Siri, but the acquisition gives Apple a path to deeper personalised recommendations through the virtual assistant integrated with Apple Music.
In all, Shazam has raised $143.5 million from investors that include Kleiner Perkins, London's DN Capital, IVP and strategic investors Sony Music, Universal Music and Access Industries (which owns Warner Music). If the $400 million buyout price is true, then that represents a significant drop from its last funding round, which put Shazam at a valuation of around $1 billion.
Snapchat could also lose out if this deal goes through.
Shazam, which lets users identify songs through their phones' microphones, has been rumoured to be an acquisition target as its losses declined. Users can scan Shazam codes, or QR codes, to launch 3D animations, product visualizations, mini-games and 360-degree videos. Considering Apple is making a bit push into augmented reality, it would make sense to see Cupertino express interest in this space.