Apple Rumored To Acquire Shazam

Yolanda Curtis
December 11, 2017

Techcrunch reported at the weekend that Apple is close to acquiring Shazam for around $400m.

The latter notes that this is much lower than the $1 billion valuation given to Shazam during its last funding round in 2015, meaning Apple has bought the United Kingdom firm at a bargain price - if the reports turn out to be true. 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. The phone will use the Shazam app to identify the sound bite.

Shazam reportedly made $54 million in revenues in its 2016 fiscal year and a statutory pre-tax loss of $5.3 million.

And with Apple Music gaining more and more followers, catching up quick on rival platforms like Spotify, it is not inconceivable to imagine that Shazam would complement iTunes harmoniously. An Apple spokesman declined to comment.

If the acquisition goes ahead it will be the biggest music acquisition Apple has added to its repertoire since it bought Dr Dre's Beats Electronics in 2014 for $3bn.

Shazam is also a major source of sending massive traffic to the like of Snapchat, Apple Music, and Spotify another popular music service.

Shazam CEO Rich Reilly and spokesman Giovanni Bossio did not respond to repeated requests for comment; an Apple rep declined to comment.

Shazam was first launched in 1999, well before the days of smartphones and apps. However, as smartphone technology moved forward, it became relatively easy for others to replicate the service.

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