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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for goog
Rosner Stocks
23 Aug 14 11:01:56
$FDN Change http://t.co/F66P7WhZCe Also See: $CAT $CMG $AEO $GOOG ~
N.J. Connolly
23 Aug 14 10:52:13
@Jeff_Sharon @HuffingtonPost @10000Words....or $GOOG & $FB could, I dunno - spitballing here - hire, er, fund, journos, dataheads, photogs
J.Paulo Coelho
23 Aug 14 10:45:25
RT @howardlindzon: NEW POST - 'When Expensive is Cheap and Cheap Expensive - Google Turns 10 http://t.co/fyKGlTF6PM $goog $study
Bidness Etc
23 Aug 14 10:33:01
#Google Rolling Out Next-Gen Internet With Fiber Service http://t.co/zyGcsacOfM $GOOG $CTL $T
Evan Van Ness
23 Aug 14 10:32:24
Google Adwords made more money in first 6 months of 2014 than Amazon has in its entire history http://t.co/dyKJbOipUJ $amzn $goog
Bidness Etc
23 Aug 14 10:00:46
#Amazon Throws Down #Gauntlet In Online Marketing Space; Takes On #Google http://t.co/nX2CG0O8ww $AMZN $GOOGL $GOOG $FB
Ray Bordogna
23 Aug 14 10:00:31
$AMZN ($153B) prepares #digital ad platform to compete with $GOOG ($397B). [http://t.co/WQWUGzKPxo] http://t.co/A5xhC4GkyS
Ted Hearn
23 Aug 14 09:49:38
Google Provides Neighborhoods With Faster, Cheaper Service, but Are Some Being Left Behind? | WSJ http://t.co/EUTC0W5xOm $GOOG
Ted Hearn
23 Aug 14 09:47:24
#Amazon Developing Ad Sales Program in a Challenge to Google and Microsoft $GOOG $MSFT http://t.co/Fs9lIBzKKU
Jen Abel
23 Aug 14 09:40:45
$AMZN to leverage #data of shopping habits to counter to $Goog #AdWords http://t.co/fNpK63mzMG
Investors Hangout
23 Aug 14 09:37:16
leahanne: $GOOG Google Inc Class C (GOOG) 582.56 -0.81 http://t.co/M6gYZ8DC9f
Investors Hangout
23 Aug 14 09:37:11
leahanne: $GOOG Google Inc Class C (GOOG) 582.56 -0.81 http://t.co/6uRjfvHxda
leahanne
23 Aug 14 09:36:51
$RCPI Rock Creek Pharmaceuticals Inc. (RCPI) 0.35 +0.01 (+2.94%) $SLCA $GOOG $DBA http://t.co/GWhrBQFSal
Wall Street News
23 Aug 14 09:30:49
$GOOG: Google Rolling Out Next-Gen Internet With Fiber Service http://t.co/ZCGxWxrlSX http://t.co/LYH1yxrZ3j
Stock Wire
23 Aug 14 09:29:46
Google Rolling Out Next-Gen Internet With Fiber Service $GOOG http://t.co/BEQyYrmEOw
Chasing Stars
23 Aug 14 09:25:58
$DOW Tick http://t.co/bavyYYIBUd Also See: $GOOG $LOCO $HON $MU ~
leahanne
23 Aug 14 09:18:59
$GOOG Google Inc Class C (GOOG) 582.56 -0.81 (-0.14%) $CIG $EWG $KEY http://t.co/yubMx5J10C
Jesse Felder
23 Aug 14 09:18:07
Interesting article on Google Fiber in @wsj http://t.co/t5tRm4cTz9 $GOOG $GOOGL
FinancePress
23 Aug 14 09:17:36
$GOOG Google Rolling Out Next-Gen Internet With Fiber Service: Google Rolling Out Next-Gen Internet With Fibe... http://t.co/R09wToIlQr
HEXE. 999.
23 Aug 14 09:04:56
RT @2morrowknight: How To Search For What You Want On #Google - http://t.co/c4F8IEsRtr $GOOG RT @shadibucklin
steven spencer
23 Aug 14 08:59:22
great job by $GOOG seeing 6yrs ago it needed to compete in mobile w/ android to stay relevant. losing share though. http://t.co/gylRUUgoMf
steven spencer
23 Aug 14 08:49:53
$GOOG only premium internet brand that gave ALL opportunity to invest @ IPO price in past 2 decades. #dutchauction http://t.co/pUZGCS5TNu
Michael Bigger
23 Aug 14 08:41:45
"@howardlindzon: NEW POST - 'When Expensive is Cheap and Cheap Expensive - Google Turns 10 http://t.co/KGNoRBOnhB $GOOG $STUDY"
Mark L. Morelli
23 Aug 14 08:41:34
How To Profit From The Internet Of Things $AAPL $GOOG $GOOGL http://t.co/7DNsWpGqXf via @benzinga
FinancePress
23 Aug 14 08:28:14
$GOOG Amazon Throws Down Gauntlet In Online Marketing Space; Takes On Google: Amazon Throws Down Gauntlet In ... http://t.co/5cSIKV2j2X
firstadopter
23 Aug 14 08:24:31
All 4 Wi-Fi SKUs of $GOOG Nexus 7 are out of stock on the Play Store. Could mean tablet update is imminent -> http://t.co/m6T7k4su3H
Wall Street News
23 Aug 14 08:15:37
$GOOG: Apple Inc., Google Inc Find Hedge Fund Love http://t.co/7IrkzGSimE http://t.co/aocHUlPN43
Stock Market Monitor
23 Aug 14 08:11:21
$GOOG: Apple Inc., Google Inc Find Hedge Fund Love http://t.co/wIbDW36Ozm http://t.co/8ntfCrQUVe
Stock Wire
23 Aug 14 08:10:59
Apple Inc., Google Inc Find Hedge Fund Love $GOOG http://t.co/4LU7tKqRNS
Investors Hangout
23 Aug 14 08:06:18
$CSX Volume http://t.co/EW3nSJ0790 Also See: $SWKS $GOOG $CMG $NKY ~
Investors Hangout
23 Aug 14 08:01:46
jim50: $GOOG Current Price Date=Aug-22-2014 Open=583.59 http://t.co/hiwN9ZcQyG
Investors Hangout
23 Aug 14 08:01:41
jim50: $GOOG Current Price Date=Aug-22-2014 Open=583.59 http://t.co/A8HrR9xPMr
Stock Market Monitor
23 Aug 14 08:00:43
$GOOG: Amazon Throws Down Gauntlet In Online Marketing Space; Takes On Google http://t.co/HvP4bmzH0c http://t.co/HqkLGYx0fY
Market Headlines
23 Aug 14 07:55:49
$GOOG: Amazon Throws Down Gauntlet In Online Marketing Space; Takes On Google http://t.co/HHjb2Jwmyl http://t.co/QRLIrMk9LT
Stock Wire
23 Aug 14 07:55:12
Amazon Throws Down Gauntlet In Online Marketing Space; Takes On Google $GOOG http://t.co/nkK3xxlELE
jim50
23 Aug 14 07:51:37
$GOOG Current Price Date=Aug-22-2014 Open=583.59 High=585.24 Low=580.64 Close=582.56 Volume=789400 http://t.co/0rxYybAyWb
Tommy The Trader
23 Aug 14 07:48:00
$AAPL #apple - Nice looking chart…$AMZN $GOOG $GOOGL http://t.co/2qgbeSqL4x
シグレ@ドラマ〜
23 Aug 14 07:32:06
日本では普及しないかも $goog
Jon Ogg
23 Aug 14 07:12:30
Google $GOOGL $GOOG must feel lucky - #Android now power almost 19,000 different devices globally. http://t.co/I3BZY2n0nm
corporatetrainercn
23 Aug 14 07:04:37
RT @GoogleFacts: In 1997, Yahoo turned down the offer to acquire Google for only $1 million. Today Google is worth $360-410 billion. $GOOG …
Investors Hangout
23 Aug 14 07:03:37
DennyT: CTIX Historical Prices $CTIX $GOOG $GS $SMH $SH http://t.co/IY5LmkeruO
Investors Hangout
23 Aug 14 07:03:34
DennyT: CTIX Historical Prices $CTIX $GOOG $GS $SMH $SH http://t.co/i8yuoe7fQ7
Investors Hangout
23 Aug 14 06:48:31
chartguy89: TBT Stock Chart $TBT $GOOG $ITB $EFA http://t.co/gi8D7jV5IY
Investors Hangout
23 Aug 14 06:48:30
chartguy89: JNUG Stock Chart $JNUG $AA $AA $GOOG http://t.co/7jDFvqDutR
Investors Hangout
23 Aug 14 06:48:22
chartguy89: TBT Stock Chart $TBT $GOOG $ITB $EFA http://t.co/jB45RrsCt4
Investors Hangout
23 Aug 14 06:48:21
chartguy89: JNUG Stock Chart $JNUG $AA $AA $GOOG http://t.co/GJy30smTo7
GGlassFan
23 Aug 14 06:47:48
RT @goinsidegoogle: Google acquires Gecko Design to work on projects for Google X, including Google Glass. https://t.co/C5ES1TX3Py $goog ht…
iHangout
23 Aug 14 06:42:44
http://t.co/Vv1sYDyeQn chartguy89: Stock Charts: JNUG Stock Chart $JNUG $AA $AA $GOOG http://t.co/LWJh8NEqFi
[ Google News ]
23 Aug 14 06:40:31
Google acquires Gecko Design to work on projects for Google X, including Google Glass. https://t.co/C5ES1TX3Py $goog http://t.co/FmrnQXqORv
Chris Perruna
23 Aug 14 06:33:28
On a roll today: "@howardlindzon: NEW POST 'When Expensive is Cheap & Cheap Expensive - Google Turns 10 http://t.co/uPw6iOFPKJ $GOOG $STUDY"
				
				
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.