Apple has scooped up London-based music and image recognition start-up Shazam for $400 million.
The Shazam app, which allows users to identify the music that’s playing nearby, such as a song in a restaurant or café, is a popular smartphone app and has been downloaded a billion times.
Apple didn’t disclose financial details but the sources have told news outlets that it’s roughly $400 million, a discount to Shazam’s $1 billion valuation. Technology news website TechCrunch reported the deal was being negotiated on Friday.
The deal comes at a time when Apple’s status as an innovation leader is under threat from Google and Samsung.
The acquisition is Apple’s most notable deal since it purchased Beats Music in 2014 for $3 billion, laying the groundwork for Apple Music.
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users,” Apple said an statement. “We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Apple has not spelled out what it plans to do with Shazam and will not be able to do that until it gets regulatory approval.