Apple has confirmed its acquisition of London based song recognition app Shazam for a reported fee of £300m.The multinational American company which has really transformed music with its introduction of iPhone and iPod said Shazam was a natural match for the company’s Music streaming service.
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users,” said Apple.
Neither Apple nor Shazam would officially reveal how much the deal worths but its reported to be about $400m (£300m).
This acquisition of Shazam is Apple biggest purchase since it bought Dr Dre’s Beat Electronics for $3bn 3 years ago.Shazam is the latest among British technology firms sold to foreign companies since the decrease in the pound after the Brexit vote.Japanese multinational telecommunications corporation Softbank bought ARM holdings for £24bn.Canyon Bridge a Chinese company bought Hertfordshire-based Chipmaker Imagination Technologies for £550m earlier this year.
Although Shazam popularity is mostly among smartphone users the company was facing problems in terms of making much money, with revenues of about $54m in 2016.
The song recognition app was formed in west London, by a group of friends that always had the problem of identifying songs they liked on the radio.The deal could likely be closed in the coming week depending on regulatory approval.