Apple could further strengthen its music service by acquiring the Shazam music recognition application later this week. If that deal is made Apple could sign one of the most important deals to strengthen its music ecosystem.
Based on various sources, TechCrunch reports that the agreement may have been signed at the time of publication of this article, which would be made official earlier this week. And although no exact figure has been specified for it, it is estimated to be in the order of the nine figures, around $400 million. Although this does not compare to the $1 trillion appraisal that Shazam received in 2015.
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The movement could be influenced, boasts TechCrunch, by the imminent flotation of Spotify. Apple jumped into the music streaming arena in July 2015, when it announced the launch of its own service: Apple Music. This, two years later, has added up to 27 million registered users. Spotify, however, has 140 million users, 60 of which are under subscription.
By the end of 2016, Shazam had surpassed one billion downloads of his application, although that figure is probably higher today. Likewise, the application’s developers have gone beyond music identification, and it is now possible to use it to recognize movies, series and even commercials.
Additionally, Shazam Studio, is working on a modality that uses augmented reality to discover content based on the images you make with your mobile device. Very much in line with Tim Cook’s development vision.
In addition to this, the application integrates with others like Snapchat and Siri, for when it gives the results of your search, which not only gives the name of the piece, but also offers contextual results that point out even the social networks of the artists who play the tunes.
The announcement of this acquisition will have deeper implications than a summation of the user base. On the one hand, Shazam is still looking for profitability, but on the other hand, the application has managed to gather some $143.5 million from investors such as Sony Music and Acces Industries (owner of Warner Music).
Will this negotiation take place?