Tech giant Apple confirmed the news on Monday that it will be purchasing song identifying app Shazam for an undisclosed amount.
Apple said it had reached a deal with Shazam Entertainment Ltd. to acquire the U.K. based company.
Shazam’s app allows people to identify songs just by pointing their smart phones at the audio source.
TechCrunch broke the news this past Friday and said that the price could be as much as $400 million. Considering that recently Shazam had been valuated at $1 billion, it doesn’t seem like too good of a deal for the company.
According to Apple, by having the app, it would be a “natural fit” to its music streaming services and it would allow users to learn about new songs. The Shazam team would be joining Apple.
Apple spokesman Tom Neumayr said that the app “is used by hundreds of millions of people around the world, across multiple platforms. … We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Apple will need to secure regulatory approval before being able to make any big changes to the app and it is not yet known if the Android version of the app will be kept available.
Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.