Apple announced today that the company has acquired Shazam for $400 million. The acquisition was first reported by TechCrunch last week according to Recode.
Shazam lets users identify music, TV Shows, movies, and commercials from short audio clips. The company also has a newly launched augmented reality (AR) service.
“We are thrilled that Shazam and its talented team will be joining Apple. 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.", mentioned an Apple spokesperson today.
“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.”, mentioned a Shazam spokesperson.
The acquisition cost is significantly lower from the initial $1 billion Shazam was valued at based on it's most recent financing round.
Although reporting a profitable EBITDA back in 2016, the company has yet to find a viable business model, pulling in only $56 million in revenue then. Shazam also reported over a billion downloads of the app at that time.
The deal is expected to close in the coming weeks pending regulatory approval.
Global ecommerce network, eBay is eager to take advantage of the Malaysian thriving Small and Medium Entreprises (SMEs) in accordance with the Malaysian government's Digital Free Trade Zone (DTFZ) effort.