- Apple is reportedly closing in on buying London-based Shazam
- Sources claimed that the deal is set to priced at $400 million
- This could be less than the over $1 billion valuation Shazam announced after its 2015 round of funding
CALIFORNIA, U.S. – Apple is believed to have offered $400 million to acquire London-based Shazam.
The company has said that Apple is close to nailing down a deal to buy the media-recognition app maker and could announce the agreement as soon as Monday.
While Apple is believed to be offering $400 million for Shazam, the amount would be less than the over $1 billion valuation Shazam announced after its 2015 round of funding.
According to experts, Apple would want to use Shazam to bolster its music business and drive sales and subscriptions from users who ‘Shazam’ songs.
The two companies have had a longstanding business relationship, under which Shazam app users can click through to purchase songs on iTunes that they’ve identified.
Shazam’s features are also integrated with Apple’s Siri voice assistant.
Shazam, founded in 1999 could initially be used by using mobile phones’ SMS text-messaging features to ID a song.
In 2008, Shazam was among the first apps in Apple’s then-brand-new App Store.
Now, Shazam’s app lets users identify and share audio, TV shows, printed material and augmented-reality content.
The company has said that its app has been downloaded over 1 billion times by users in over 190 countries.
Shazam users use the app more than 20 million times per day.
Shazam boasts of investors including Kleiner Perkins Caufield & Byers, Institutional Venture Partners, DN Capital, Acacia Capital Partners, and Mexican billionaire Carlos Slim’s America Movil, along with Universal Music Group, Sony Music Entertainment and Len Blavatnik’s Access Industries (parent of Warner Music Group).