Apple Inc. AAPL beat out multiple rivals, including Spotify and Snap Inc SNAP, in acquiring the music and image recognition platform Shazam, TechCrunch reported.
What You Need To Know
Apple didn't disclose the price tag on its latest acquisition, but sources close to the matter told TechCrunch the deal values the London-based company at around $400 million. Talks between all parties may have been ongoing for five months, and Apple ultimately ended up the winner.
Why It's Important
Apple's acquisition of Shazam comes at a time when its streaming music platform isn't getting as much traction as Cupertino hoped, Recode's Kara Swisher told CNBC in an interview. In contrast, Spotify is "still doing very well" despite its own issues with monetizing its platform.
Apple needs to "jumpstart" its service, and Shazam is not only a very good technology platform that could be integrated into its platform, but Apple also snagged the company at a discount, Swisher said.
What's Next?
Shazam's technology would help Apple Music users identify and find similar music — a feature Spotify already offers.
"If you consume more, presumably you like it more and will subscribe more," Swisher said on CNBC. "Instead of building it, Apple bought it. I don't know if they will keep the name Shazam, but [will] probably integrate it into [their] services."
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