Apple said to be buying music recognition app Shazam

Apple is in talks to acquire Shazam Entertainment, the app which helps users recognize songs by pointing their device towards an audio source. The news first reported by TechCrunch said that Apple could be paying $400 million for Shazam and the deal could be signed by next week.

The acquisition would help Apple embed Shazam tech more deeply into its music offerings, which include a music-streaming service and the iTunes Store. Shazam, based in the UK has raised $143 million from DN Capital Limited, Institutional Venture Partners, and Kleiner Perkins Caufield & Byers, among others, over its 18-year history.

However, it’s not clear what will happen to Shazam’s existing deals with Spotify, which competes with Apple’s music-streaming service, or Snapchat, which has integrated Shazam into its camera screen.

By acquiring Shazam, Apple will gain an upper hand over its rivals, since Shazam would no longer be referring people to rivals Spotify and Google Play Music. At present, Spotify has around 60 million users worldwide and Apple Music has just 27 million. The acquisition would help Apple Music users to find songs easily and help them add to the playlists.