Have you heard the news? Apple (NASDAQ:AAPL) is reportedly closing to finalizing a deal to buy Shazam, which, for those who live under a rock, is an app that lets an individual identify songs, TV shows, and movies from a mere audio clip. According to Recode, who confirmed the news, the acquisition is forecasted to be for $400 million.
If this deal were to go through, there would be obvious benefits for both companies. For starters, Apple would not only be acquiring Shazam, but also the company’s sound recognition technologies. Many speculate Apple will save some money on the commissions it pays Shazam for sending its users to its iTunes Store, which made up most of Shazam’s revenue last year.
Further, there are benefits if the tech giant decides to shut down the app. Why? If Apple were to shut it down, it would hurt rival streaming services as Shazam sends users to their sites after showing the song to the user.
That being said, the real benefit for Apple comes from the app’s AR technology. This year, the company rolled out an augmented reality platform for brands, which lets users scan books, posters, magazines, and other products.
Shazam has grown in popularity over the years but has struggled in terms of finances, so it is likely that this problem will go away after Apple acquires it, meaning its only up from here on out.
Featured Image: twitter
