Apple Confirms Shazam Purchase As They Look To Grow Apple Music Share
Apple has confirmed that they have cut a deal to by the UK Shazam music service as the Company looks for new ways to increase share for their Apple Music service which only has 27million users Vs Spotify’s 60M.
The US Company who have struggled to deliver their new iPhone X has purchased Shazam Entertainment, the UK-based app that lets users identify songs by pointing a smart phone at the audio source. The purchase price is believed to be US$400M.Apple did not give a price for the acquisition.
The most recent valuation for Shazam was $1 billion which is a privately owned Company.
Apple said Shazam would be a “natural fit” with its Apple Music streaming service and it would help users discover new songs. Apple Music has 27 million users and competes against Spotify, which has 60 million users. Apple said Shazam’s team would be joining the Cupertino company.
In a statement, Apple spokesman Tom Neumayr said Shazam “is used by hundreds of millions of people around the world, across multiple platforms. … We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Apple did not elaborate on its plans, but the company will not be able to make any major changes to Shazam until it secures regulatory approval.
Shazam is also available on Android-based devices, but Apple did not say whether it would keep the Android version available. Shazam ended support for a version of its software that runs on Microsoft Corp’s Windows PCs earlier this year.