September 24, 2018
Apple Sept. 24 announced it has finally completed the acquisition of Shazam, a highly-rated music app that enables users to recognize a song playing around them after hearing a few notes. The app has been downloaded more than 1 billion times.
Financial terms of the deal first revealed last December were not disclosed, although media reports pin the transaction around $400 million. It marks Apple’s biggest acquisition since the 2014 purchase of Beats for $3 billion.
“Apple and Shazam have a long history together,” Oliver Schusser, VP of Apple Music, said in a statement. “Shazam was one of the first apps available when we launched the App Store and has become a favorite app for music fans everywhere.”
The app – which was reportedly coveted by Spotify and Pandora – will soon be offered ad-free to users, according to Apple. How the tech giant plans to monetize Shazam remains to be seen.
Shazam says users employ the app more than 20 million times each day – yet the technology has reportedly never been profitable despite enabling users to discover, interact with and share video, audio or printed content across devices and mediums.
Online music has become a hot market with Apple Music recently edging ahead of Spotify with more than 20 million paying subs. In May, CEO Tim Cook said Apple Music was approaching 50 million users when combining free and paid subs.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, the company has transformed consumer technology with the iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless connectivity across all Apple devices and services, including the App Store, Apple Music, Apple Pay and iCloud.