SAN FRANSICO (Reuters) - Apple Inc (NASDAQ:AAPL) on Monday confirmed it had reached a deal to acquire Shazam Entertainment Ltd, the U.K.-based app that lets users identify songs by pointing a smart phone at the audio source.
Continue Reading Below
Apple did not give a price for the acquisition. Technology news website TechCrunch reported the deal on Friday with a price of as much as $400 million, far short of the most recent $1 billion valuation for privately held Shazam.
Apple said Shazam would be a “natural fit” with its Apple Music streaming service and it would help users discover new songs. Apple Music has 27 million users and competes against Spotify Ltd, which has 60 million users. Apple said Shazam’s team would be joining the Cupertino company.
In a statement, Apple spokesman Tom Neumayr said Shazam “is used by hundreds of millions of people around the world, across multiple platforms. ... We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Apple did not elaborate on its plans, but the company will not be able to make any major changes to Shazam until it secures regulatory approval.
Shazam is also available on Android-based devices, but Apple did not say whether it would keep the Android version available. Shazam ended support for a version of its software that runs on Microsoft Corp’s (NASDAQ:MSFT) Windows PCs earlier this year.
Reporting by Stephen Nellis in San Francisco; Editing by Andrew Hay