Apple acquires Shazam reportedly for $400 million

We just reported a few days back that Apple was going to acquire Shazam a music recognition app. While we were expecting the deal to be finalized soon, Apple has now confirmed its acquisition of Shazam. The Cupertino-based company is basically acquiring the music app in an effort to increase its music business.

Apple has not disclosed the price, but multiple reports suggest that the company has bought the application for $400 million.

Interestingly, this is the first major acquisition after the company bought Beats in 2014 for nearly $3 billion. According to a report by TechCrunch, Apple has been in talks with Shazam for about five months to acquire it. The music discovery app was also in talks with Snapchat and Spotify. Apple has not revealed the details of how it is going to use Shazam's assets after the acquisition.

"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," the company told the publication.

"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," Shazam added.

Meanwhile, the reported deal of $400 million is actually lower than the $1 billion dollar valuation that Shazam had received during its last funding round. The company has been struggling with finding a viable business model and they reported only $54 million in revenue in 2016.

However, Apple is yet to reveal what it will do with it's newest acquisition. It will be interesting to see how it will work out. Shazam's technology could be used in the company's music streaming platform Apple Music.