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Apple to buy Shazam for $400 million: Report

on December 08, 2017, 4:36pm

Apple is reportedly finalizing a deal to acquire Shazam, the popular music and media recognition app. According to sources at TechCrunch, the deal could be signed by the end of the day, with an official announcement coming as early as Monday.

Launched by a London company back in 1999 as an SMS-based service, Shazam allows users to identify songs, TV shows, movies, and even advertisements by listening to an audio clip or receiving an image or video. The app then links you to relevant content, including Spotify and Apple Music links. There app also has the Artist on Shazam service, which allows users to see what famous people are Shazaming, as well as branded augmented reality features.

(Read: Apple Music head Jimmy Iovine says music streaming services aren’t “making any money”)

Sources put the sale price at nine figures, with one insider putting it at $401 million. That’s notably short of the $1.02 billion post-money valuation Shazam had during its last round of funding, which was in 2015. The app hit one billion downloads in September of 2016, and reported $54 million in revenue and a $5.3 million pre-tax loss for the 2016 fiscal year. Even so, its AR features, Siri compatibility, and the fact that it’s already driving users to Apple Music all fall into the plus category for Apple.

Neither company has commented on the potential acquisition, but if the reported timeline is correct, we should know more soon.