Apple confirms acquisition of music recognition app Shazam

$400 million for a song recognition app?

Apple has confirmed that the company is acquiring music and image recognition app Shazam. The rumour first surfaced on TechCrunch, and now has been confirmed.

Apple-Shazam Deal

While there is no official confirmation on the price, the deal is said to be worth Dh1.47 billion ($400 million).

The following is the statement put forward by Apple:

We are thrilled that Shazam and its talented team will be joining Apple. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms. 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.

And for press release completists, here’s the Shazam announcement:

We are excited to announce that Shazam has entered into an agreement to become part of Apple. 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.

But why Shazam?

Shazam has been struggling as a company for a while now but its usefulness for Apple is pretty obvious. The incoming team can help improve an Apple Music experience that has been pretty stagnant for a while now. Secondly, we could be looking at an iOS song recognition feature like the one on the new Google Pixel 2 and Pixel 2 XL on the upcoming iPhones. Antoher major reason is the block the growth of apps such as Spotify and Youtube, which get click-throughs from Shazam.

The company’s image-recognition technology will also come in handy as Apple has been working on its AR platform for a while now.

The deal should close in the coming weeks pending regulatory approval.