Carlos Slim, a tycoon in the telecommunications industry in Mexico and one of the richest men worldwide invested $40 million in Shazam, a British smartphone app developer.
Shazam prides itself as a leading media engagement company that connects music to 350 million people in more than 200 countries and 33 languages. It uses the audio fingerprinting technology to recognize music and enables users to access, buy or download offers from television advertisements.
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America Movil SAB de CV (NYSE:AMX) (NASDAQ:AMOV), the telecommunications company controlled by Slim, established a strategic business collaboration with Shazam for the Americas. The smartphone app developer said that Slim’s $40 investment will help accelerate Shazam’s growth in music, expansion into television, and in developing innovative products.
Carlos Slim Defining a New Category of Media Engagement
In a statement, Slim recognized that Shazam is “defining a new category of media engagement” by combining the power of mobile with traditional broadcast and advertising to create compelling value and experience to consumers. He also expressed excitement about bringing the innovations of the British smartphone app developer to the subscribers of America Movil SAB de CV (NYSE:AMX) (NASDAQ:AMOV) to differentiate its services in Latin America.
On the other hand, Andrew Fisher, executive chairman of Shazam said, “This investment will help support our continued effort as we seek to become increasingly important part of people’s everyday lives. With over 350 million users, we are excited to be partnering with America Movil to further accelerate our growth throughout the Americas.”
According to Fisher, he approached Slim and encouraged him to use Shazam on the smartphones offered by America Movil SAB de CV (NYSE:AMX) (NASDAQ:AMOV). Slim immediately responded with an investment.
“The conversation actually began when we approached Mr Slim to get Shazam on his smartphones, but it quickly turned into an investment,” said Fisher as quoted by the Telegraph in a related report.
Shazam is expected plans to launch its initial public offering (IPO) in late 2014. Fisher cited that the company is still unable to make solid sales projections at present, and still needs to raise more funds from investors. Shazam is expected to raise as much as $1 billion from an IPO.
Shazam Says Sales Are Doubling Annually
In addition, Shazam CEO Rich Riley emphasized that the company is moving into a new phase of growth with interactive advertising after the expansion into television. The company is now generating new sources of revenue and partnerships with broadcasters who encourage a broad group of people to use Shazam frequently.
At present, Shazam’s sales of digital goods are now more than $300 million per year through its affiliates such as Apple Inc’s iTunes. The company said its sales are doubling annually.