After many initial developments in last week, Apple finally took over music recognition app, Shazam in a deal worth $400 Mn. Going through initial talks with Snap and Spotify over the acquisition, finally Apple acquires it for a whooping amount and from now on Shazam is a part of Apple family, said the company.
Shazam is now an integral part of Apple Family post the deal
An Apple spokesperson confirmed the news of acquisition to The Verge and stated;
“We are thrilled that Shazam and its talented team will be joining Apple. Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Shazam was valued at $1 Bn according to the last funding round. But, due to poor business model, it could get funds worth s54 Mn in 2016. Shazam find it hard to proceed in such a way when revenues for the company were very low. So they took the decision to sold it out. Six months ago, SnapChat on advice of Goldman Sachs shows its interest in buying out the company and table conversations started for the same. Snapchat is already integrated with Shazam and it was going well and it further gave a boost for the final deal. But not so good time in stock market for Snapchat forces them to took their steps back. Also, Spotify tried to took over company but could not agree on pricing and idea called off.
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Then, Apple entered into the scene last month and finally closed the deal. Eddy Cue, Apple’s senior vice president of Internet Software and Services thought that Shazam will help them build better music opportunities for users as music has been a priority for the company from the days of launch of iPod.
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Shazam also made an official statement about the deal with Apple and said;
“We are excited to announce that Shazam has entered into an agreement to become part of Apple. Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users.”
Shazam can be useful for company in many ways. Shazam offers a service where a user can search the database of infinite number of songs through a short clip, also known as music recognition feature. This feature can be integrated into iOS along with Apple’s personal assistant, Siri to take the future devices to the new level. Apart from this, Shazam will help out Apple’s music business and might transfer users database in case, Apple decides to close down the company.