Apple announced Monday that it has acquired Shazam, one of earliest players in the mobile music’s world. The deal boosts Apple’s bigger ambitions in the music business and advances its artificial intelligence efforts.
The single purpose of the Shazam app is to identify a song by hearing just a snippet of it and connect users to a service to download or stream it.
Apple did not disclose the price but we have some sources familiar with the deal that has confirmed to us that Apple is buying Shazam for around 400 million.
Shazam was launched in 1999 and it lets users identify TV shows, songs, commercials, and movies from short audio clips. The company claims that around 1 million users have downloaded its app and used it to recognize songs at least 30 billion times.
“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,” an Apple spokesperson said.
Shazam was expecting the acquisition cost around $1 billion but due to company’s hard time in finding a viable business model the company reported only $54 million in revenue in 2016.
Apple could acquire many things with the help of Shazam as Apple is interested in Shazam’s augmented reality technology, music, and sound recognition. Apple could improve Shazam’s augmented reality technology’s offering.