Key sources suggest that Apple is looking to purchase audio-recognition app Shazam, for a deal valued worth $400 million. The iPhone-maker is said to sign an acquisition deal this week, according to a report by ReCode.
If the deal goes through, it would mark Apple’s second biggest acquisitions after Beats in 2014 for $3 billion. Apple acquiring Shazam would also imply that the tech giant would no longer have to pay Shazam for iTunes referrals. In addition, Apple could also end Shazam support for rivals such as Spotify, Google Play All Access, Pandora, and more.
Interestingly, the report also notes that Apple has been eying Shazam for years now, to use the technology for its own Augmented Reality initiative. Apple recently launched an ARkit for iOS app developers as the company plans to go big on AR.
Key sources suggest that Apple has been hiring AR talent and is secretly working on some kind of commercial release. Even CEO Tim Cook believes that AR is the next big thing, as he talked about AR several times during an earnings call back in July 2016.
The company is also rumoured to be working on its own wearable device, something on the lines of Google Glass with a focus towards augmented reality. Apple has been struggling with iPhone sales in recent quarters, with accusations of lacking in inventiveness which has stifled company’s earnings and reputation. And such a breakthrough device could revive consumer faith in the company after Steve Job’s demise .
Meanwhile, Shazam was first released back in 2008 on iOS and Android platforms. The app essentially allowed users to find music by holding their smartphones in the vicinity of a speaker. The app recognizes which song is playing, along with the ability to recognize clips from TV shows, movies, as well as classical music. However, in 2015, Shazam was updated with voice-recognition abilities that further bolstered its popularity and also paved the way for AR.