A person who is familiar with the situation has disclosed that Apple Inc. will be buying the music identification service Shazam. According to this person, the deal will cost Apple $400 million, making it one of Apple’s most expensive acquisitions ever, and the most expensive since the acquisition of Beats Electronics in 2014.
“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 said in an emailed statement on Monday.
“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 added.
According to the research firm App Annie, Shazam has roughly 175 million active monthly users across the globe, with the most users living in either the US or the UK.
Shazam identifies songs playing nearby by using the microphone on a computer or smartphone, and then shows users where they can listen to the song online, for example YouTube, Apple Music or Deezer.
The London-based company started out in 1999 with a service where users could phone a number, listen to a song and then receive a text message with the song’s name and the artist, and has since built a reputation as an innovator in the music industry.
The motivation behind Apple Inc.’s acquisition of Shazam is speculated to be the ability to further embed music recognition into its music offerings. Shazam is already integrated with Apple Music and Apple’s virtual assistant, Siri, as well as with the streaming service, Spotify.