Apple has confirmed that they purchased Shazam, the app that identifies songs and to a lesser extent, movies and television shows after listening to them for a few seconds.
Apple spokesperson Tom Neumayr stated, “We are thrilled that Shazam and its talented team will be joining Apple. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms.
According to TechCrunch’s sources, the deal was reportedly worth around $400 million.
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great experiences to our users. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement” Neumayr added.
In 2015 Shazam received a one billion dollar evaluation, while the app provides a great service and seems like magic to the layman, the reason they didn’t quite hit half of that billion dollar evaluation is that they never had a surefire business model.
$54 million in 2016 is nothing to sneeze at, but analysts believe that Shazam missed the boat by not becoming a streaming service, instead, it worked in conjunction with Spotify, Google Play Music, and Amazon Prime Music.
Shazam is an attractive investment to Apple because it gives them access to data that will enable them to identify up and coming artists. In addition to that, Shazam comes with its own augmented reality technology that it debuted in 2015. It allows users to scan magazines, posters, and ads and see a 3D product animation of whatever particular brand it’s focusing on. We know Apple is heading in that direction since they have released a slew of AR apps with their iOS 11 update. This could help them push that technology even further.