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Business News Digital
Shazam raises new finance, gets half billion valuation
By Chris Cooke | Published on Tuesday 11 March 2014
Music data whatnot company Shazam has confirmed that it has secured another $20 million in financing from undisclosed investors, in a round of new investment that values the business at around half a billion dollars.
Although Shazam has traditionally generated revenue from the referral fees it earns whenever users buy music from a download store after identifying a track with the music identification technology, the company is increasingly expanding its operations. In the US by working with the advertising and TV industries to run mobile-based promotions on the back of television output, and globally by recognising the value of the data the firm is sitting on, something that has led to the recent A&R partnership with Warner Music.
Given that the core Shazam music-identification-and-sell-through business is well established and seemingly profitable, the new investment is presumably to help fund the newer elements to the company’s business.
