Google Inc (NASDAQ:GOOG) (GOOGL) finally acquired Songza, a music curation and streaming company to enhance its music service. The acquisition ended weeks of speculations surrounding the issue.
Last month, it had been reported that Larry Page, CEO of Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) negotiated for the deal. The search engine giant confirmed that it acquired Songza in a post on Google Play today. Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) said, it is not planning to implement immediate changes to music curation and streaming company. Songza will continue to operate its business as usual for its existing users.
In addition, the search engine giant said, “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. In the meantime, check out their service to find a playlist for any mood you’re in — whether you’re feeling a little mellow or a lot funky.”
On the other hand, “We can’t think of a more inspiring 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 the meantime, we’ll be walking on sunshine.”
Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) did not reveal the terms of the acquisition. People familiar with the negotiations indicated that the search engine giant offered to purchase Songza for $15 million last month.
Technology industry observers previously suggested that the search engine giant had been seeking for a streaming service with an appealing and popular name brand to boost and differentiate its music service. They opined that its existing Google Play All Access service, which is offered for $9.99 per month is less competitive compared with internet radio service providers, Spotify and Pandora Media, Inc (NYSE:P).
Songza’s music curation strategy is unique. The company does not only organize music playlists by artists or suggests songs with similar styles, but it also considers recommends music to users based on the activities they are doing, mood and others.
Most of the music streaming providers depends primarily on algorithms to improve music experience for users.
