At the weekend, TechCrunch reported that Apple and Shazam agreed to merge for $ 401 million. Today the company from Cupertino confirmed officially the fact of buying the well-known brand in the music world. The US Based technology giant Apple has as also officially confirmed the purchase of the well known music recognition service Shazam. Rumors of a possible takeover had first surfaced last week.
The app is considered as one of the current most popular music services in the world, and it’s valued at around ONE BILLION DOLLARS. But the purchase price of Apple should be according to “Recode” with 400 MILLION DOLLARS far below. In fact, Shazam is struggling to find a suitable monetization model. The app only realized $ 56 million last year.
The statement published by The Verge says that the Shazam team will join Apple, emphasizing the presence of multiple points of contact between the two in their passion for music, as well as plans for improving Apple Music and Shazam services, introducing “magic for their users.”
One of the next steps Apple can take is shutting down the application for third-party platforms. The service can push about the in-house streaming service Apple Music with deeper integration into Apple’s mobile operating system iOS and Siri, which will give some new arguments in favor of giving up Spotify. Little is known that Shazam also has outstanding technology in the field of augmented reality, such as in object recognition. Apple could benefit from it with smart glasses or new iPhone features.
In addition, Shazam has several promising AR projects that are the subject of Apple’s interest in the coming years.