Apple has acquired music identification platform Shazam in a deal believed to be worth in the region of $400m. UK-born Shazam was founded in 1999.
Apple said in a statement today (December 11): “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.
APPLE MUSIC AND SHAZAM ARE A NATURAL FIT, SHARING A PASSION FOR MUSIC DISCOVERY AND DELIVERING GREAT MUSIC EXPERIENCES TO OUR USERS.”
“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 said in a statement: “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.”
Apple rival Spotify acquired a music identification startup of its own back in March when it bought British company Sonalytic.
Earlier today, analyst Mark Mulligan wrote: “The fact that it sold for $400 million – just 2.8 times its total investment ($143 million) and well below its previous pre-money valuation of $1 billion, illustrates how much value has seeped out of Shazam’s business.
“The Apple acquisition though, is one of the few ways that Shazam’s ‘hidden’ value can be realised.”Music Business Worldwide.
(Source: Music Buiness Worldwide)