Apple confirms acquisition of music identification app Shazam

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The Apple logo
The Apple logo is pictured inside the newly opened Omotesando Apple store at a shopping district in Tokyo. (REUTERS/Yuya Shino)

Following reports last week that Apple was eyeing the music recognition app Shazam, the technology giant confirmed on Monday that the acquisition has been made.

In a statement, the Cupertino-based company announced the news, calling the music recognition app a natural fit with Apple Music.

“We are thrilled that Shazam and its talented team will be joining Apple,” said Apple. “Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users.”

“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,” said Shazam.

The terms of the deal were not disclosed, but reports estimated the acquisition to be valued at around $400 million. Shazam was once a company worth $1 billion. However, it struggled to find a profitable business model and only earned a revenue of $54 million in 2016.

Shazam will be a good fit with Apple’s streaming service. Apple Music has been expanding and improving its services to battle music streaming giant Spotify. The music identification app links to both Spotify and Apple Music. Both get a combined 1 million clicks per day from the app.

If Apple decides to shut down the Shazam app, it would take away referrals to Spotify while still enjoying the music recognition services that Shazam is known for.

Currently, Shazam is already integrated with Apple’s virtual assistant software Siri. This allows users to ask Siri what the title of a currently playing song is. Siri will use the Spotify app to answer the user’s inquiry. The recent acquisition will allow Apple to integrate Shazam’s capabilities further into the iOS.