According to recent media reports, Apple is close to taking over Shazam for US$400million.
The music recognition app founded in 1999 currently has 100 million monthly users, allowing them to identify music from a snippet of sound using their computer or smart device.
According to the BBC, Shazam makes its revenue via commissions paid on referrals to Apple’s iTunes Store.
The US$400million price that Apple offered Shazam is lower than the most recent post-money valuation of US$1.02 billion, according to Pitchbook.
The BBC also noted that by acquiring Shazam, Apple would be able to cut out the “middleman” and “save money on commissions”.
Written by Leah Alger