iPhone-maker Apple has beaten music service Spotify and Snapchat's parent company Snap to acquire music recognition app Shazam, which can identify songs in a matter of seconds through the microphone of the user's device, for $400m.
"Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users". At its heart, Shazam has experience and assets in a few key areas: Music recognition, specifically algorithms to match snippets of songs; Video recognition, since Shazam can also match clips of TV shows and movies; A considerable and well-indexed database of media to match snippets to; And an incredibly popular app that sends millions of customers a month to streaming services.
Shazam started in 1999 as a service where people could call a phone number, hold the receiver up to a source of music, and be texted the name of the song and its artist. Shazam was valued around $1 Billion during the last funding round which is now acquired at $4 Billion by Apple.
So, why has Apple confirmed it is "combining" its business with that of the smaller London company?
But with growing competition between Apple Music and Spotify - which also ties into Shazam - Apple may have felt the need to secure the service rather than risk its Swedish rival or some other company buying it first.
"We can't imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users", Shazam cited in a separate statement.
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A developer will now be able to put their app in the App Store up to 90 days in advance of its release, rather than only being able to publish their app when it's ready to launch.
Shazam is already integrated with Apple's Siri voice assistant.
Shazam could be a way for Apple to catch up.
In fact, Spotify was interested in buying the company but couldn't afford it, TechCrunch reported.
Perhaps, Apple is keen to build on Shazam's efforts to develop killer features of its own for the launch of its much-rumoured AR glasses.
Shazam in November had around 175 million monthly active users across the world from iOS and Android, with a market of 20 million users in the U.S. and 4 million in the UK.