NY post had reported about the Apple’s acquisition of Beats music which later turned out to be true and this time it says that Google Might Acquire Songza a music streaming company for $15 Million. The price seems to be less when compared with $3 Billion that Apple paid for Beats but actually out of three only $500 Million were for the Beats music streaming. Spotify recently raised around $4.7 Million from Justin Beiber’s manager Scooter Braun and Amazon. There is no clear understanding about the source of revenue for Songza however it recently started a bit of advertising and also putting sponsored playlists.
Songza has only 5.5 Million active users compared to 77 Million for Pandora and 10 Million for Spotify. The market value for Pandora has been estimated to be around $5 Billion whereas for Spotify it is $4 Billion, and these facts could be used to Google very efficiently to bring down the deal to much lower amount. Google although has its own streaming service Google Play All Access which it offers for $10 a month and is also working on building a Youtube based music streaming service and it can used the expertise of Songza really well.