Apple acquires song identifying app Shazam for undisclosed sum

Posted:
in iPod + iTunes + AppleTV edited December 2017
Apple on Monday confirmed that it has purchased popular service Shazam, an app that listens for and identifies songs. It was rumored that the deal was for about $400 million, but no official sale price was given.




Apple announced the acquisition in a statement to BuzzFeed News, noting that Shazam has consistently been one of the most popular applications available to download on the iOS App Store. The company said that Shazam boasts hundreds of millions of users around the world on multiple platforms.

"Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users," Apple spokesperson Tom Neumayr said. "We have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement."

It remains to be seen what, exactly, Apple plans to do with Shazam. While it has a standalone app, the company also integrates with Siri, Apple's voice-driven personal assistant.




Word first surfaced last Friday that Apple was close to buying Shazam. It was said that the price was about $401 million -- a significant discount from the $1 billion the company was valued at in its last funding round in 2015.

Shazam started life in the UK in 1999 as a product called 2580, named after the number users had to dial to reach the service via text. Since its debut on the iOS App Store, and subsequently Mac App Store, Shazam has evolved into a comprehensive audio fingerprinting service that allows users to identify songs, movies, TV shows and other media by capturing short audio segments.

Currently, Shazam features integration with a number of music services, including iTunes and Apple Music. While iTunes hooks feature simple track purchasing options, Apple Music subscribers can use Shazam to quickly add identified songs and to a customized playlist.
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Comments

  • Reply 1 of 48
    razorpitrazorpit Posts: 1,011member
    Seems like a steal compared to the Beats purchase.
    SpamSandwichcornchip[Deleted User]watto_cobra
  • Reply 2 of 48
    The question is, 'what does Apple really want to do with the intellectual property?' Just as Apple's acquisition of PrimeSense was not about turning AppleTV into an X-BOX competitor; but actually wanted the visual tech for FaceID, I'm certain that this acquisition is about acquiring the IP for a use that's radically different from how it is being used by Shazam.
    patchythepiratelito_lupenalostkiwiStrangeDayscornchipwatto_cobrajony0
  • Reply 3 of 48
    NY1822NY1822 Posts: 601member
    http://news.shazam.com/pressreleases/shazam-launches-first-scaled-augmented-reality-solution-for-brands-worldwide-1842402

    interested to see how Apple will integrate the AR technology.....probably in a way that most people are not expecting....i love this acquisition 
    racerhomierazorpitemoellerlostkiwicornchipwatto_cobrajony0
  • Reply 4 of 48
    asdasdasdasd Posts: 5,324member
    longpath said:
    The question is, 'what does Apple really want to do with the intellectual property?' Just as Apple's acquisition of PrimeSense was not about turning AppleTV into an X-BOX competitor; but actually wanted the visual tech for FaceID, I'm certain that this acquisition is about acquiring the IP for a use that's radically different from how it is being used by Shazam.
    Hard to see unless Shazam are working on something cleverer than they already have. 
    watto_cobra
  • Reply 5 of 48
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    bb-15StrangeDayswatto_cobrajony0claire1
  • Reply 6 of 48
    asdasdasdasd Posts: 5,324member
    NY1822 said:
    http://news.shazam.com/pressreleases/shazam-launches-first-scaled-augmented-reality-solution-for-brands-worldwide-1842402

    interested to see how Apple will integrate the AR technology.....probably in a way that most people are not expecting....i love this acquisition 
    Oh. Forget my last comment. They could be after this. 
    watto_cobra
  • Reply 7 of 48
    SoliSoli Posts: 9,274member
    asdasd said:
    NY1822 said:
    http://news.shazam.com/pressreleases/shazam-launches-first-scaled-augmented-reality-solution-for-brands-worldwide-1842402

    interested to see how Apple will integrate the AR technology.....probably in a way that most people are not expecting....i love this acquisition 
    Oh. Forget my last comment. They could be after this. 
    It didn't make sense to me for that price this many years after Shazam launched until I saw that Shazam was getting into AR.
    asdasdtechnologistbb-15watto_cobrajony0
  • Reply 8 of 48
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    razorpit
  • Reply 9 of 48
    NY1822NY1822 Posts: 601member
    Maybe this has some implementation in the AR glasses they are working on...to look at something and have info appear...that would be great
    watto_cobra
  • Reply 10 of 48
    NY1822NY1822 Posts: 601member
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    "...though nobody knows exactly how profitable Beats is (it's a privately held company so it doesn't need to disclose financial details) everyone thinks the profit margins on that $1 billion in revenue are high. After all, the headphones aren't especially good so there's no reason to think they're expensive to make. If Beats is able to obtain a 15 percent profit margin on $1 billion in annual sales, then a $3 billion capital investment to buy the company would imply a 5 percent rate of return — a perfectly respectable use of money that's otherwise just lying around idle. At one point, Beats was selling $200 headphones that cost as little as $14 to make so it's easy to imagine the deal working financially even without any big new product ideas."
    "...Without looking deeply at Beats' internal financial information, we can't evaluate the terms of the deal in detail but there's nothing especially unorthodox about paying $3 billion for a company with $1 billion in revenue."
    edited December 2017 randominternetpersonlito_lupenaStrangeDays
  • Reply 11 of 48
    NY1822 said:
    http://news.shazam.com/pressreleases/shazam-launches-first-scaled-augmented-reality-solution-for-brands-worldwide-1842402

    interested to see how Apple will integrate the AR technology.....probably in a way that most people are not expecting....i love this acquisition 
    Shit, oh dear...

    The ShazApple AR implementation can be the next big step in marketing, shopping and buying everything... anything!

    The ShazApple tags can replace UPC/BarCodes, QR-Codes, etc.

    The ShazApple tags can be physically placed on separate tags, built-in to the product/label -- or virtually  displayed on menus, maps, web sites...

    They can be sent via iMessage/texts, email, etc... tag me instead of text me... (more info than in an emoji)

    This gonna' be really, really big!


    edited December 2017 patchythepirate
  • Reply 12 of 48
    bb-15bb-15 Posts: 269member
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    A business acquisition doesn't have to make sense to everyone.
    What I believe is that Tim Cook is very good at managing the money side of a company.
    Apple looked at the value of Beats not only in terms of tech but also with the value of celebrities using Beats products which is not only free advertising but also links Apple with customers in a younger demographic.
    I'm sure Apple considered all of that before making the Beats deal. 
    SolirandominternetpersonfastasleepStrangeDayswatto_cobra
  • Reply 13 of 48
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    Honestly, your take makes no sense.  Apple got a 2 for 1 when it acquired Beats.  It got the streaming service which became the foundation for Apple Music and it got the headphone company that had the highest profile, largest market share, highest margins, and most profit in it's industry.  How is it a bad idea to buy that when you have aspirations like AM?  Smug attitudes be damned, Beats was profitable beyond any other acquisition that could have gotten Apple a toehold in streaming music.  No audiophile recommends Beats?  So what?  No audiophile equipment sells in volume like Beats either.  Apple sells commodity electronics in high volumes, Beats fit that description.  AirPods fit that description.  Neither are audiophile level items. 

    As far as Shazam is concerned, I'm hoping Apple announces something new and exciting from this acquisition.  Shazam is already highly integrated in iOS so not sure what else they can do with it.  Unless it's interested in Billy Batson's AR tech.  
    LukeCageRayz2016fastasleepStrangeDayswatto_cobra
  • Reply 14 of 48
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    Who cares what you think on this one? Seriously. The acquisition includes inroads across the music spectrum, relationships worth billions of future revenues tied to the entire Apple ecosystem, to 24/7 constant advertising via Beats Radio, etc. Apple has more than tripled back its investment of Beats.
    tmaypatchythepiratefastasleepStrangeDayswatto_cobra
  • Reply 15 of 48
    This isn't about listening to music, it's about listening to YOU.  There will be an always on option under the ruse that if you want to know what song is playing, just look at your phone and it will tell you.  You won't need to initialize Shazam.  But it will be always listening, grabbing words as well, sending you ads based on your conversations.  Big Brother is always listening - they didn't have to force it on you, you just reached for the candy.
  • Reply 16 of 48
    SoliSoli Posts: 9,274member
    bb-15 said:
    razorpit said:
    Seems like a steal compared to the Beats purchase.
    Apple is still making Money from Beats. I only bought the BeatsX thanks to the W1 chip & lightning charging 
    Still doesn’t make sense to me. Apple has the smarts to make its own headphones (see Air Pods) and probably better ones than Beats (no audiophile recommends Beats). Iovine, Dre and Reznor were not worth $3B. But because $3B is pocket change for Apple nobody cares.
    A business acquisition doesn't have to make sense to everyone.
    What I believe is that Tim Cook is very good at managing the money side of a company.
    Apple looked at the value of Beats not only in terms of tech but also with the value of celebrities using Beats products which is not only free advertising but also links Apple with customers in a younger demographic.
    I'm sure Apple considered all of that before making the Beats deal. 
    I can’t say I understand how Apple plans to capitalize on AR. In an automobile windshield I can see how AR in a windscreen would offer benefits for drivers, but we’re already moving toward autonomous vehicle tech where it’s not needed, and I’m fairly certain the price is likely too high without an increase in safety to make it feasible.

    That said, Apple has an excellent track record of only plopping down hundreds of millions in acquisitions when they’re very sure it will be a huge boon to their bottom line. so I have no doubt that Apple has this mapped out.

    Beats was pretty obvious when you look at their popularity, revenue, and profits.

    So if we assume AR is coming in an Apple-y way that isn’t a gimmick, how would they do that? How could they do that?
  • Reply 17 of 48
    sanssans Posts: 45member
    Maybe this is for a voice print authentication system?
    Soli
  • Reply 18 of 48
    I think there is a lot more to this acquisition then meets the eye, no pun intended.

    For starters, I think the app will go by the way side and the service will be fully baked into iOS.

    Beyond that, I couldn't tell you what else Apple could and will do, but something big I'm sure.
    watto_cobra
  • Reply 19 of 48
    asdasd said:
    longpath said:
    The question is, 'what does Apple really want to do with the intellectual property?' Just as Apple's acquisition of PrimeSense was not about turning AppleTV into an X-BOX competitor; but actually wanted the visual tech for FaceID, I'm certain that this acquisition is about acquiring the IP for a use that's radically different from how it is being used by Shazam.
    Hard to see unless Shazam are working on something cleverer than they already have. 
    Yeah. You will sing song and it will find original on iTunes...
  • Reply 20 of 48
    NY1822 said:
    "...though nobody knows exactly how profitable Beats is (it's a privately held company so it doesn't need to disclose financial details) everyone thinks the profit margins on that $1 billion in revenue are high. After all, the headphones aren't especially good so there's no reason to think they're expensive to make. If Beats is able to obtain a 15 percent profit margin on $1 billion in annual sales, then a $3 billion capital investment to buy the company would imply a 5 percent rate of return — a perfectly respectable use of money that's otherwise just lying around idle. At one point, Beats was selling $200 headphones that cost as little as $14 to make so it's easy to imagine the deal working financially even without any big new product ideas."
    https://www.vox.com/2014/5/28/5758964/why-apple-is-buying-beats is the elided source for the quote.   Agreed that 3X sales for a growing high-profit margin biz with add-ons is a steal.   Other tech company purchases which raised eyebrows (at the time, but not in hindsight) include Google buying 65-employee YouTube for 1.6B in 2006.   Looks like it's monetized now, and the purchase was all-stock at 1/4 of today's share price.
    randominternetpersonfastasleepwatto_cobra
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