Apple has shied away from acquiring big money deals for years. The company has repeatedly hired small teams to build their own in-house designed apps. Today, the company has made one of the largest acquisition in its history by acquiring the sound recognizing App, Shazam.
The deal is believed to be of around $400 million, as reported by TechCrunch last week. The app uses sound recognition to identify movies, songs, commercials and TV shows from sound clips.
Talking to the Verge, a spokesperson from Apple described the two services, Apple music, and Shazam as two natural fits that share a passion for music delivery and offering their users a great music listening experience.
The music recognition application ranks top among the most downloaded apps worldwide. Shazam launched the service in 1999 to enable people to identify specific songs by dialing a number.
Today, the UK based company is well recognized for its audio recognition apps that are widely downloaded across the globe. Shazam is used by hundreds of millions of people all over the world.
In a statement, the Apple’s spokesperson said that the company has many exciting plans for its users, “and we look forward to combining with Shazam upon approval of today’s agreement,” Neumayr, the Apple’s spokesperson said.
In a statement to the Verge, Shazam confirmed the deal by saying that service had become a part of Apple. The company said that the app is among the top rated worldwide with hundreds of millions of users.
“We can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users,” Shazam said.
The app was initially valued at $1 billion. However, the company experienced the hard financial year 2016, managing to pull in only $54 million last year. The company had difficulty times identifying the viable business models in 2016. Apple acquired the service at quite a lower price than what Shazam anticipated.
That was 2016; now the app has many ways to revive its glory at the hands of Apple. The first obvious service to Apple is by improving Apple’s music and upgrading the listeners’ experience.
The music recognition app sends over one million clicks to Apple’ music and Spotify in a day.