20 Dec Apple To Acquire Shazam App For £300M
Apple is buying Shazam, the app that is still the best way to identify songs that you do not know the name of for £300 million. TechCrunch was the first to report details of the acquisition last week however the news was confirmed by Apple to the Verge. Recode believes that the deal is worth up to £300 million which according to the Verge report, is significantly less than the £750 million that the giant app was last valued at.
The takeover, would be Apple’s largest in the UK. It is safe to say that Shazam investors are likely to be unhappy with the price as the company was valued significantly higher in 2015.
Apple is expected to integrate the Shazam technology with their own apple music streaming service to compete with the leading service Spotify. Shazam’s app has been downloaded more than one billion times however it has struggled to generate profit. In fact it has generated a pre-tax loss of GBP 4 million on revenue in 2016. Do you think Apple can flip the figures around?
Statement from Apple:
“We are thrilled that Shazam and its talented team will be joining us,” an Apple spokesperson told The Verge. “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.”