Yesterday, Apple confirmed that it had purchased song identifying app Shazam. The acquisition was pegged in the $400 million range. Apple isn’t known to be in the business of acquisitions, so this purchase is particularly interesting and here’s why.
Why this matters: The app has been downloaded 1 billion times and has 120 million active users who use the app 20 million times daily. Since its founding in 1999, the app has been profitable, drawing most of its revenue from advertising. With its large userbase, this is a treasure trove of customer data that Apple now has access to.
What next?: As of now, Apple has not confirmed how it plans to integrate Shazam once the acquisition is complete.