APPLE IS REPORTEDLY buying music discovery app Shazam for $400 (around £300m).
Having heard from sources close to the matter that an official announcement could be made as soon as today (11 December) with a deal said to have been finalised over the week.
While one of TechCrunch‘s sources describes it as a “nine-figure” acquisition, another says Apple is planning to pay $400m for the service. This latter number has been backed up by Recode, which notes that a deal would be a “significant discount” from Shazam’s last round of funding, which valued the firm at around $1bn in 2015.
Neither Apple nor Shazam have commented on the speculation, but the deal likely would make sense for both parties.
Shazam, an app which lets you identify songs, movies, and TV shows from an audio clip, is already tightly-integrated with Apple’s Siri, allowing iPhone users to identify songs by saying “Hey Siri, what’s that song.”
Shazam’s other features, such as the ability to identify television shows, have not yet been integrated with the iOS assistant, and it’s likely that Apple is keen on the firm’s new augmented reality tech that lets users scan books and advertisements, for example, which could then launch 3D animations, product visualizations, and 360-degree videos.
The acquisition would also mean that Apple would save money on the commissions that it pays Shazam for sending users to the iTunes Store, which made up the majority of Shazam”s revenue in 201 and drove 10 per cent of all digital download sales.