Reports: Apple to Acquire Shazam for $400 Million

New reports out of both Recode and TechCrunch today claim Apple is gearing up to acquire music identification service Shazam for $400 million. The deal, according to both reports, could be announced as early as next week, with one stating news could come on Monday. Both Shazam and Apple have not commented on the subject.

If Apple buys out Shazam, it could mean big things for the app. For one, it could be integrated into the next version of iOS to identify songs on the go much like the Google Pixel 2 can, while the identification company’s AR technology could also be used to improve ARKit. If you’re unfamiliar, Shazam’s AR platform lets you scan objects to be presented with things like 360-degree videos and 3D animations right on your phone’s screen. Considering Apple is making a bit push into augmented reality, it would make sense to see Cupertino express interest in this space.

Buying out Shazam would also rid Apple of having to pay Shazam for click-throughs to iTunes purchases like it does now. This could also mean other streaming services like Spotify and Google Play Music could eventually not be allowed to pay the service to place links to their respective platforms in song and artist listings, therefore putting pressure on the rest of the industry. Why? Because according to The Wall Street Journal, Shazam accounted for 10% of all digital music purchases last year.

Snapchat could also lose out if this deal goes through. Right now, Shazam integrates with the app, but that may change if Apple takes ownership. According to Recode, Snap had even tried to buy the app, but Apple won it out in the end.

Additionally, Shazam might even make a decent profit again if they get acquired. Last year, they only made $54 million and lost $5.3 million. No plans were given as to how Apple could turn things away, but implementation into the latter company’s platforms could be a start.

We’ll let you know if we hear anything further about this deal.