It's official: Apple is buying Shazam

  • Apple has bought Shazam, one of the early hit iPhone apps.
  • The Shazam app allows users to identify the music that's playing nearby, such as a song in a restaurant or cafe. It also had augmented reality technology and an advertising business.
  • No price was included in the announcement, but a source tells Business Insider it was around $400 million.

Apple has bought Shazam, the popular music-recognition app and augmented-reality service.

Shazam and Apple both confirmed the purchase on Monday morning. "We are thrilled that Shazam and its talented team will be joining Apple," an Apple spokesperson told Business Insider. 

"Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms," he continued. 

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Full price information

A price was not included in the announcement, but a person familiar with the deal told Business Insider on Friday that it was $400 million, significantly less than the company's last valuation of over $1 billion, although that price was said to be a "bit artificial" due to later investors receiving a liquidation preference. 

Apple spokespeople did not elaborate about Apple's plans for the Shazam service, but the company mentioned that it is popular "across multiple platforms" in its statement, suggesting a possibility that Apple keeps the service operational. 

Salaries of employees at 25 top tech companies:

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Salaries of employees at 25 top tech companies
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Salaries of employees at 25 top tech companies

Google

Average annual bonus: $32,478

Average sign-on bonus: $27,547

Average annual base salary: $136,000

Netflix

Average annual bonus: $0

Average sign-on bonus: $3,520

Average annual base salary: $206,000

Twitter

Average annual bonus: $120

Average sign-on bonus: $26,144

Average annual base salary: $149,000

Apple

Average annual bonus: $20,298

Average sign-on bonus: $27,201

Average annual base salary: $102,000

Facebook

Average annual bonus: $33,225

Average sign-on bonus: $45,708

Average annual base salary: $145,000

Oculus VR

Average annual bonus: $395

Average sign-on bonus: $6,926

Average annual base salary: $119,000

Amazon

Average annual bonus: $24,732

Average sign-on bonus: $41,340

Average annual base salary: $118,000

Square

Average annual bonus: $988

Average sign-on bonus: $17,996

Average annual base salary: $134,000

Uber

Average annual bonus: $31,633

Average sign-on bonus: $1,807

Average annual base salary: $117,000

Pinterest 

Average annual bonus: $4,374

Average sign-on bonus: $33,376

Average annual base salary: $151,000

Tesla

Average annual bonus: $4,779

Average sign-on bonus: $19,447

Average annual base salary: $105,000

UnitedHealth Group

Average annual bonus: $7,280

Average sign-on bonus: $118

Average annual base salary: $87,000

Snap Inc.

Average annual bonus: $10,588

Average sign-on bonus: $23,705

Average annual base salary: $127,000

Hewlett Packard Enterprise Co.

Average annual bonus: $10,756

Average sign-on bonus: $8,265

Average annual base salary: $131,000

CSRA

Average annual bonus: $13,732

Average sign-on bonus: $1,186

Average annual base salary: $100,000

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Capital One

Average annual bonus: $15,114

Average sign-on bonus: $8,568

Average annual base salary: $107,000

Fitbit

Average annual bonus: $18,069

Average sign-on bonus: $25,459

Average annual base salary: $128,000

Pandora

Average annual bonus: $22,316

Average sign-on bonus: $18,886

Average annual base salary: $109,000

Microsoft 

Average annual bonus: $23,224

Average sign-on bonus: $20,191

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Airbnb

Average annual bonus: $23,250

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Arista Networks

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Average sign-on bonus: $18,652

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credit: Facebook

Linkedin

Average annual bonus: $32,216

Average sign-on bonus: $25,418

Average annual base salary: $149,000

Dropbox

Average annual bonus: $32,707

Average sign-on bonus: $32,833

Average annual base salary: $144,000

VMware

Average annual bonus: $33,145

Average sign-on bonus: $18,851

Average annual base salary: $147,000

Salesforce

Average annual bonus: $39,959

Average sign-on bonus: $28,314

Average annual base salary: $142,000

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Shazam will be one of Apple's biggest deals in years. Apple's largest purchase to date was another music-centered company, Beats, in 2014 for $3 billion. 

Google recently incorporated similar technology to Shazam's into its high-end Pixel 2 smartphone. Google's version of the technology constantly monitors nearby music, displaying each song title on the phone's screen — a handy feature that may have led Apple to conclude it needed to offer a similar function in its iPhones in order to not appear behind the curve.

Here's the full Apple statement, provided by spokesperson Tom Neumayr:

"We are thrilled that Shazam and its talented team will be joining Apple. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms. Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement."

Here's Shazam on the deal, provided by spokesperson Giovanni Bossio:

"We are excited to announce that Shazam has entered into an agreement to become part of Apple. Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users."

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See Also:

SEE ALSO: Apple is buying Shazam for $400 million

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