Google Purchases Music Streaming Service Called Songza
Well it’s official folks! Google has purchased the music streaming service Songza and has confirmed the news in a Google+ post.
Songza has also made a short press release regarding the purchase.
“Today, we’re thrilled to announce that we’re becoming part of Google. We can’t think of a better company to join in our quest to provide the perfect soundtrack for everything you do. No immediate changes to Songza are planned, other than making it faster, smarter, and even more fun to use.”
In case you don’t know what Songza is, we’ll fill you in. Songza is essentially a music streaming service, which suggests North American Internet users several playlists based on time of day and mood or activity free of cost. The company went live in 2007 and has its offices in New York City.
As explained by Songza itself:
“Songza is a concierge style music discovery engine. We offer expertly curated playlists designed to enhance or accompany whatever you’re doing throughout your day.”
The nifty details of how much Google paid to acquire Songza were not publicized. However, rumors suggest that the deal was made at $15 million. TechCrunch reports that Songza was offered deals by several interested parties, which could have helped in kicking its price up a few notches.
On the other hand, The New York Times claims that the deal was near the $40 million mark after news regarding the deal was made official.
Google has said that Songza’s expertise will continue to operate from New York for the next few weeks until they move over to Mountain View, California.
With its conception, Songza has managed to generate a grand sum of $6.7 million in funding. Songza was the result of many investors, which include names like Amazon, Metamorphic Ventures, Deep Fork Capital, William Morris Endeavor, Geoff Judge, David Hirsch, Scooter Braun and Gary Vaynerchuk.
Google has not revealed its plans for Songza yet, although the company is looking forward to tinkering around with its new toy and incorporate its technology with its own current media products.
“Over the coming months, we’ll explore ways to bring what you love about Songza to Google Play Music. We’ll also look for opportunities to bring their great work to the music experience on YouTube and other Google products.”
Songza currently has around 6 million user base, which pales in comparison to giants like Spotify, Pandora and Soundcloud. Also, it doesn’t disclose how many of those active users opt to pay for the $.99 weekly subscription service.
Regardless, the bottom line is that the media streaming arena is getting more and more competitive as the key players, like Apple, Amazon, and Google are all interested in gaining the lead over one another by offering mobile products and services, which are no-brainers.