Apple agrees to buy Shazam app for $ 400 million

Apple said on Monday it had reached an agreement to buy the Shazam music recognition application, a deal valued at $ 400 million.

“We have big plans in mind, and we can not wait to get in touch with Shazam after approving this deal today,” Apple said in a statement, citing a “passion for discovering new music” as a common ground between the two companies.

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According to the website “Record”, the agreement announced by Apple should be subject to approval by the UK authorities because Shazam is based in the United Kingdom.

Sources aware of the deal have told TechCrunch that Apple will pay $ 400 million for Shazam, less than the $ 1 billion that the app was worth in 2015.

Despite its popularity, Shazam struggled to find a profitable business model. In 2016, the company reported revenue of $ 54 million.

Apple explained that Shazam, used by millions of people on different platforms, has been one of the most popular iOS apps since its launch on the App Store.

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Apple may include Shazam on Siri, the iOS artificial intelligence system, making it easier to find songs for iPhones and iPads users.

Apple Music, the company’s streaming platform founded by Steve Jobs, had 27 million subscribers this year, up from 60 million in Spotify, according to Fortune magazine.