Apple is reportedly finalizing a deal to acquire Shazam, the app that lets you identify songs, movies, and TV shows from an audio clip. TechCrunch reported the news, and later Recode confirmed it and added that the deal is reportedly for $400 million.
For Apple, acquiring Shazam will improve company’s music and sound recognition technologies.
19 years ago in 1999, Shazam was launched, well before the days of apps, as a SMS service — and its first name was 2580.
The app passed 1 billion downloads back in September 2016 and it integrates with other apps like Snapchat and Siri, and sends lots of traffic to other music apps like Apple Music, which pays it when those clicks convert to purchases.
Shazam made £40.3 million in revenues in its 2016 fiscal year, and the company’s CEO Rich Riley noted that operating at or near profitability makes it an acquisition target.