logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Google Enters Streaming Music Arms Race with Purchase of Songza

By  +Follow July 2, 2014 10:37AM
Share:
Tickers Mentioned:

best streaming music companies, are streaming music companies profitable, who owns songza, who owns soundcloud,

Google Inc. (GOOG)  has purchased Songza, a Long Island-based streaming music service that uses situational context to generate music playlists.

Talks between the two companies have been ongoing for at least a month, as the New York Post reported in early June that Google was offering around $15 million. Songza successfully held out for a higher bid from Google, which upped their offer to over $39 million, according to The New York Times.

The deal is a strategic move for Google to seize a larger piece of the high-growth streaming music industry and keep users engaged with its devices and services. Google hopes to build Songza and its 5.5 million subscribers into a legitimate competitor.

There has been a recent series of acquisitions for streaming music businesses, but even with Beats and Lala under Apple’s (AAPL) control, Twitter (TWTR) owning SoundCloud, Pandora (P) dominating internet radio, and Spotify boasting over 10 million paying users, Google still has the resources to build a true rival.

Songza’s product is unique and intuitive because it assembles playlists based on the situation. For example, on a Friday night, Songza will offer playlists for dance parties, unwinding, romance, bedtime, and so on. Playlists are entirely different by Saturday morning.

The acquisition is unlikely to affect Google’s bottom line whatsoever. Even Spotify, with $500 million in revenue, is still losing money, and Pandora's struggles are well documented. Yet, major tech companies are paying premiums to buy out streaming music services to improve user engagement and remain musically competitive with their rivals. One has to wonder if Samsung (SSNLF) is next to make a similar acquisition.

Google shares traded flat during trading on Wednesday, hovering around $582 most of the day.

However, Pandora reacted positively to the news as investors continue to speculate that the company could be primed for an acquisition. The stock rose 2.4% to $30.30, up 24% for the month.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for goog
Consestimate
1 Oct 14 17:54:49
Google Deliberately Weakens Open Source Android As It Hopes To Dominate With Android One. $GOOG. http://t.co/vp1QklZagN
Stock Moo
1 Oct 14 17:49:37
$goog: Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/zd6aLh58ny
Stock Moo
1 Oct 14 17:49:36
$goog: Google Deliberately Weakens Open Source Android As It Hopes To Dominate With Android One http://t.co/8tHh3SoXat
4-traders.com
1 Oct 14 17:35:03
LinkedIn : How many you's are there? http://t.co/idYbx0zUZk $LNKD $GOOG
Chris Wrobel
1 Oct 14 17:12:12
Great @WSJ article on running a company for the long-term, explains a lot about $GOOG thanks @dkberman http://t.co/1405t7c9Q0
Solo traders
1 Oct 14 16:46:17
$GOOG - Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/JozohDk6Bw
Stocks News&Markets
1 Oct 14 16:46:15
$GOOG - Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/E1bQuxRlXT
john smith
1 Oct 14 16:46:11
$GOOG - Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/TrZBQHb4Sq
Live Stock News
1 Oct 14 16:46:07
$GOOG - Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/LWh2eSDjoP
NASDAQ
1 Oct 14 16:46:02
$GOOG - Google Announces Date of Third Quarter 2014 Financial Results Conference Call http://t.co/X4W3SmkLMP
BV Technology
1 Oct 14 16:45:03
$GOOG Google Announces Date of Third Quarter 2014 Financial Results Conference Call.. http://t.co/ud9Y4kpRbT
Stock Wire
1 Oct 14 16:27:57
Google Inc is 'safest place to put your data,' chairman Eric Schmidt says $GOOG http://t.co/auwmmb5Coo
FinancePress
1 Oct 14 16:21:36
$GOOG Google Inc is 'safest place to put your data,' chairman Eric Schmidt says: Google Inc is 'safest place ... http://t.co/Orypy7xM0K
Hospital Mgmt Feed
1 Oct 14 16:20:58
CEO Pay Now $7,000 an Hour - 350 Times the Av... $goog $cbs $gbl $kos $cacc $anf $hca $dis http://t.co/Im6h1mSjHn http://t.co/pA1FYfpayJ
OIl & Gas Sctr Feed
1 Oct 14 16:20:58
CEO Pay Now $7,000 an Hour - 350 Times the Av... $goog $cbs $gbl $kos $cacc $anf $hca $dis http://t.co/CyMDXSKGlh http://t.co/nm6r0gEUxe
Inv Bankers Feed
1 Oct 14 16:20:54
CEO Pay Now $7,000 an Hour - 350 Times the Av... $goog $cbs $gbl $kos $cacc $anf $hca $dis http://t.co/HuwSPLWMIG http://t.co/WWEUCutOMj
Tech Industry Feed
1 Oct 14 16:20:53
CEO Pay Now $7,000 an Hour - 35... $goog $cbs $gbl $kos $cacc $anf $hca $dis #TechIndustry http://t.co/hr0O5T2bjv http://t.co/XrJKYPbb71
Consumer Services
1 Oct 14 16:20:53
CEO Pay Now $7,000 an Hour ... $goog $cbs $gbl $kos $cacc $anf $hca $dis #consumerservices http://t.co/Ja6GyMqQPm http://t.co/sN3SnbV9TQ
Broadcasting Feed
1 Oct 14 16:20:52
CEO Pay Now $7,000 an Hour - 350 Times the Av... $goog $cbs $gbl $kos $cacc $anf $hca $dis http://t.co/yocXFvMO7o http://t.co/A5NNS6iVie
[ Google News ]
1 Oct 14 16:18:52
The American Legislative Exchange Council was unaware it was going to lose @google's... https://t.co/UOYnr4lhew $goog http://t.co/lXAv2lNuqg
シグレ@ドラマ〜
1 Oct 14 16:02:05
日本では普及しないかも $goog
Violeta
1 Oct 14 15:49:57
RT @carlquintanilla: Rumors remain that $GOOG would like to buy $TWTR. "I'm sure $MSFT would pick them up in a heartbeat" - @nickbilton, on…
Stock Moo
1 Oct 14 15:49:36
$goog: Here's A Really Simple Trick For Cutting Down On How Much Cellphone Data You Use http://t.co/VnMCt5PyRy
Stock Moo
1 Oct 14 15:49:35
$goog: Technology start-ups in central and eastern Europe blow away stereotypes http://t.co/JexFcoRkM3
Mr.Incredible
1 Oct 14 15:46:37
RT @carlquintanilla: Rumors remain that $GOOG would like to buy $TWTR. "I'm sure $MSFT would pick them up in a heartbeat" - @nickbilton, on…
BUZZ Just-In
1 Oct 14 15:40:30
You may be paying much higher spreads for US Tech Giants http://t.co/TPs272NYdZ $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
Paul Ciana
1 Oct 14 15:34:18
RT @CoryTV: Take a walk through a Google data center – Data Centers – Google http://t.co/eqbAvC0VzB $GOOG
Dividend Buddy
1 Oct 14 15:21:06
$GOOG News: Google Announces Date of Third Quarter 2014 Financial Results Conference Call: MOUNTAIN VIEW, Cali... http://t.co/eUok431Cx0
joan soliva
1 Oct 14 15:07:45
“@nanexllc: Silly #HFT algo running in $GOOG - from both BOST and EDGA http://t.co/uW6iOCogId”
Stock Wire
1 Oct 14 15:04:45
Google Inc (GOOGL), Ryder System, Inc. (R): 80% Success Rate Of Satisfying ... $GOOG http://t.co/j5iJqdljJx
Stockaholics
1 Oct 14 15:02:59
Subscribe to our Penny Stock Newsletter, for FREE! Major new picks coming: http://t.co/buedBpPSUK $TRX $AAPL $GOOG
Tech Alerts
1 Oct 14 15:00:05
Samsung: Tizen Phones Are Coming Soon http://t.co/ELDId5Fx5n $GOOG $GOOGL $SSNLF
Consestimate
1 Oct 14 14:50:38
Room Scheduling Startup Raises $1.5 Million From Google Ventures, Marc Benioff, Zetta Venture Partners. $GOOG. http://t.co/W0N50bOK2T
Consestimate
1 Oct 14 14:47:06
Google Runs Afoul of German Privacy Laws. $GOOG. http://t.co/OERgaSb4CF
Matt
1 Oct 14 14:45:18
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Locutus
1 Oct 14 14:31:16
RT @mtravizano: $Goog The invisible uber editor “@Amazing_Maps: Google Maps http://t.co/OVLwb9yr3F different borders in India, Germany and…
Nic
1 Oct 14 14:14:01
same story for $GOOG $GOOGL: more calls than puts today almost 2/1
Cory Johnson
1 Oct 14 14:13:39
Take a walk through a Google data center – Data Centers – Google http://t.co/eqbAvC0VzB $GOOG
BUZZ Just-In
1 Oct 14 14:10:26
Don't ignore transactions costs- they add up- US Tech Giants http://t.co/TPs272NYdZ $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
vvim vvauters
1 Oct 14 14:02:41
RT @mtravizano: $Goog The invisible uber editor “@Amazing_Maps: Google Maps http://t.co/OVLwb9yr3F different borders in India, Germany and…
John Melloy
1 Oct 14 13:56:17
Disappointing. Would have been great for $GOOG or $MSFT -> NFL strikes deal with DirecTV for Sunday Ticket $DTV http://t.co/XnD2xE1KYw
L337
1 Oct 14 13:55:22
RT @POWCOIN: Headline 1 year from now: Netflix buys IMAX $NFLX $IMAX $GOOG Google buys #blockchain
ProjectLockerHQ
1 Oct 14 13:54:31
Google Drops Compute Engine Prices By 10 Percent http://t.co/RphqziePAj by @techcrunch $GOOG http://t.co/3O32lNbxmg
Rotten Al
1 Oct 14 13:53:08
$GOOG continues to put the heat on $AMZN AWS http://t.co/ZNpsP92Ybw
Jaison Mathew
1 Oct 14 13:51:05
$FB, $GOOG, and $TWTR must now reg. as "organizers of info distribution," & store all #data on Russian users in RU | http://t.co/NNsVFXBXoD
Stockaholics
1 Oct 14 13:50:01
Subscribe to our Penny Stock Newsletter, for FREE! Major new picks coming: http://t.co/buedBpPSUK $IBM $GOOG $AAPL
Stock Moo
1 Oct 14 13:49:40
$goog: Review: Pay by phone or just keep using plastic? http://t.co/gOwQ1fUljb
Stock Moo
1 Oct 14 13:49:35
$goog: Google Runs Afoul of German Privacy Laws http://t.co/y25JcFZb3E
Bidness Etc
1 Oct 14 13:45:18
Paypal will now be operating as a separate entity http://t.co/4wqcrWmGLG $GOOGL $GOOG $EBAY
Stockaholics
1 Oct 14 13:44:00
Subscribe to our Penny Stock Newsletter, for FREE! Major new picks coming: http://t.co/buedBpPSUK $CBL $GOOG $BLL
				
				
By  +Follow July 2, 2014 10:37AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.