Shazam Scores a $40 Million Investment Round…

It’s not Spotify level funding, but it’s pretty damn big — especially for a music play.  Or, mostly a music play: enter Shazam, who just scored a monstrous, $40 million funding round from Carlos Slim-headed America Movil.  The investment comes alongside a packaged, strategic play with Movil, one that includes pre-loading Shazam apps into a range of devices.

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The Slim injection comes roughly two years after a similarly-massive, $32 million round in 2011.  That round, led by Kleiner Perkins Caufield & Byers (KPCB) and Institutional Venture Partners (IVP), among others, came as the company was rapidly spreading its recognition capabilities into areas like television and advertising.

Fast-forward to the present, and Shazam is now playing a ‘Google for audio’ game with serious IPO buzz.  And, generating $300 million in download sales per year, largely via iTunes and Amazon referrals.


Written while listening to Brahms.

10 Responses

  1. Tune Hunter

    Shazam is one of those that keeps music industry on the streets, free of charge for anyone. If they will become buy only store – all (including Shazam) will benifit! As it is they are just catalizer of piracy! ( in 85% of cases)

    • Lou D. Chris

      But they are one of the biggest drivers of iTunes sales (Tune In Radio being another)

      • Tune Hunter

        iTunes can give them 2 cents per ID ( today they get NOTHING) and have own iHunt ap driving sales.
        In the meantime Shazam is most often a hybrid of a common prostitute (working for free) and passer of someone else property to freeloading criminals.
        Do not forget they are just fashionable wizz kids living out of investors cash for last 13 years – for them there is no need for profit after Slim they will talk to Parker.

        • GGG

          You know you can just google like 5 lyrics of a song and pull it up slightly less quickly, right? Should it cost money to google things, too?

          • Tune Hunter

            Yes! If you are Googling someones property search result should lead to a sugestion leading to retail activity, not theft – Yes! More cash for Google and a chance to put music under the lock. Enjoy it as you listen, if you need to know more or use it again – PAY!
            Time for RIAA to change the law – no dinking with somone property for no particular reason!

          • Casey

            That would require shelving fair use entirely. Not going to happen.

          • tune Hunter

            RIAA folks are competent and well connected! Changes are cooking at congress right know and we all know that in 90% cases lyric search or Shazam is not a fair use. Thy should do it! 16 to 20 billion in one year just from that!

        • GGG

          Where does “one’s property” stop? Should networks get paid if I google a TV show? Should farmers get paid if I google a type of vegetable? Should Porsche get paid if I google a model of car? Should Picasso’s estate get paid if I google Guernica? Should you get paid if I google “DMN Tune Hunter comments?”

    • Henry Chatfield

      I don’t think there is a debate whether Shazam is a catalizer of piracy or not.
      A person has probably already made up their mind on their digital music consumption behavior. That is, they will find the song and either buy it, steal it, or stream it.
      Aruging that Shazam influences this behavior seems like kind of a moot point to me.

      • Tune Hunter

        You are correct, this debate is long overdue.
        Shazam should be a perfect new era music retailer!
        Current activities by Shazam keep the music in the open.