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Apple Inc Acquires Music Identification App Shazam For $400 Million

DIVYIA ASTHANA | 0
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| December 12 , 2017 , 11:25 IST

Multinational Tech giant Apple Inc, in one of its largest-ever acquisitions, announced that the company will be acquiring popular music-identification app Shazam, reportedly for $400 million. The last major acquisition made by Apple was in 1996 when it purchased Next Computer Inc. at a cost equivalent to $600 million in today's currency.

According to reports, the final deal is likely to come as a disappointment for some of the investors of Shazam Entertainment Ltd. as the 18-year-old company was valued at $1 billion at its last funding round in 2015.

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The Shazam mobile app uses the microphone on a smartphone or computer to identify any song playing nearby and giving options where the user can listen to it in the future. In order to increase its value and services, Shazam later added an option for tv users to record any given ad, after which Shazam would show where the item in the ad could be bought.

“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users,” Apple said in an emailed statement.

Shazam in November had around 175 million monthly active users across the world from iOS and Android, with a market of 20 million users in the US and 4 million in the UK.

 “Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS,” Apple also said.

With the acquisition of Shazam, Apple will be able to embed its capability more deeply into Apple's music offerings.