Here are some reasons why Apple purchased Shazam for $400 million

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Apple has said that Shazam is a "natural fit" for its streaming music platform.

As Shazam is holding a billion of users worldwide, so its consumer record and data is itself containing a value of $400 million. The British company of the Shazam app has been started in 2002 that offers phone service to identify music.

"We are thrilled that Shazam and its talented team will be joining Apple", a spokesperson for Apple said in a statement obtained by the Verge.

Rumors that Apple was acquiring music-recognition app Shazam surfaced last week, and Apple has now confirmed the deal but without disclosing any details. If that is the price, it likely represents a good deal for Apple - Shazam was valued at $1 billion at its last funding round in 2015.

But Shazam has struggled to find a way to make money off its technology, even as it said that it had reached one billion downloads on smartphones past year.

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Shazam is already an integral part of Siri, powering the Apple voice assistant's song recognition function. Key sources suggest that Apple has been hiring AR talent and is secretly working on some kind of commercial release. "We have exciting plans in store".

While no financial details were disclosed, sources familiar with the matter told TechCrunch that the deal is worth around Dollars 400 million. That means when you use the app and successfully match a song, you see a link to Apple Music rather than Spotify or Pandora.

"Spotify has made the discovery of new music front and centre of what makes it a compelling proposition", Mark Mulligan, an analyst with Midia Research, told the BBC. "Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can't imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users".

Since its launch, Shazam has kept adding to its services.

With Shazam making moves into augmented reality Apple might be looking to rush head first into that market given the success of the iPhone X and its Aniemojis. The giants will work together and bring a whole new platform to help all the Apple users for their music desires and more.