Apple bought Shazam for $ 400 million

Apple is completing procedures for the acquisition of Shazam music discovery application.

According to TechCrunch, the deal will soon be announced on Monday. If that really happens, the price will be about $ 400 million, according to Recode. Since its inception in 2002, Shazam has called for at least 140 million dollars.

This news comes after rumors of Snapchat being the buyer. Last year, Snapchat signed a contract so users can find Shazam's songs right on the app. Finally, Apple is the buyer.

No formal confirmation has been received yet from any party but it is certain that this deal is in progress.

Apple bought Shazam for $ 400 million Picture 1
Apple will receive many benefits from this sale

With Apple, Shazam acquisition will have many benefits. First of all, they don't have to send commissions to Shazam for bringing users to the iTunes Store. This commission accounts for most of Shazam's revenue in 2016 and contributes 10% of digital download sales, according to the Wall Street Journal.

Most noticeable are competitors like Spotify, Google Play Music, which will be under pressure. According to the Wall Street Journal, every day Shazam sends approximately 1 million clicks.

According to The Verge, the biggest benefit is related to AR, the technology behind Shazam. Earlier this year, they launched the AR platform to support the technology they introduced since 2015, allowing users to scan for real products such as magazines, books, advertisements to see more related information. mandarin

With over 1 billion downloads, Shazam is a popular music search application for nearly 20 years of existence and development. But 2016 revenue is only $ 54 million. When it comes to Apple, finding profits is probably no longer a problem.

See also: The most downloaded apps on Apple Store in 2017