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
BYOD News
20 Dec 14 10:33:57
wsqkd: $GOOG Open Innovation OpenWebofThings [call for proposals] http://t.co/YP1vCedBLs #IoT
leahanne
20 Dec 14 10:31:45
$ARIA Ariad Pharmaceuticals (ARIA) 7.22 +0.61 (+9.23%) $GS $CHRW $GOOG http://t.co/kXLTDZPuZJ
HotKeyTrading
20 Dec 14 10:30:06
All-Time Lows: $TMST $GOOG $YNDX $ARR $JIVE $LINE $ECA $WB $NRP $W $FET $BSMX $BAS $CJES $ERF http://t.co/TRx9EnjwT5 #dow #investing #stock
Quantum Solid
20 Dec 14 10:28:57
$GOOG Open Innovation @OpenWebofThings [call for proposals] http://t.co/7eJm3EDhbB #IoT
4-traders.com
20 Dec 14 10:24:16
#GOOGLE 'C' : Saturday Money: 'Invitation' to fraudsters to rip off Dartford m... http://t.co/eNLv3sYZkP $GOOG
Investors Hangout
20 Dec 14 10:22:12
DennyT: GOOG Nasdaq $GOOG $USO $ZIVO $FXE $BBRY Buy or http://t.co/SOCVGJa8pa
DennyT
20 Dec 14 10:20:24
GOOG Nasdaq $GOOG $USO $ZIVO $FXE $BBRY Buy or Sell?,200 Simple Moving Average,High,Headlines,Getting Interest http://t.co/sZPAINZTRh
Kodiaq
20 Dec 14 10:17:23
Ask yourself why the $GOOG hasn't had a data breach like Sony - it's bc they sit atop of others' data.
FinancePress
20 Dec 14 10:12:10
$GOOG Google Maps (GOOG) Now Lets You Tour Street View In Virtual Reality: Google Maps (GOOG) Now Lets You To... http://t.co/B2rdVZNqlT
Mohamed Hamdy
20 Dec 14 10:10:45
RT @Inbox101: $GOOG's Seeks Partners for Self-driving Cars http://t.co/Ux6W3ZPyeA $GOOGL
Teddy Vallee
20 Dec 14 10:09:54
$GOOG's Seeks Partners for Self-driving Cars http://t.co/Ux6W3ZPyeA $GOOGL
Gordon Bowman
20 Dec 14 10:04:05
Mobile, Search, & The Continental Drift http://t.co/kJfYWJmBww via @om $GOOG $FB $TWTR
Theodore Kekstadt
20 Dec 14 10:00:37
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/DSuFFNDAYN
YourPersonalTrader
20 Dec 14 09:59:20
MOMO recouped only~60% (recent Hi) ➡️"MEGA CrAP; $AMZN $GOOG $PCLN $TWTR $YHOO $NFLX http://t.co/8YlI4VjxU0 $SPY http://t.co/VZbbvxLcKR
Chris Perruna
20 Dec 14 09:46:22
$TWENTY15 Cybersecurity: $CYBR $PANW $CHKP $LOCK $CUDA $VDSI $QLYS BioTech: $ILMN $JUNO $CELG $REGN Dig $: $AAPL $GOOG $AMZN $V $MA
Jake13
20 Dec 14 09:44:28
$USO Opinion Click here to find out if $USO is a buy hold or sell. Watching these stocks. $GOOG $EUM $UVXY $LC http://t.co/sDfW0sfdpA
PolgarStocks
20 Dec 14 09:30:03
$GOOG Percent Change Updated Saturday, December 20, 2014 12:07:25 PM $NBR $CVX $DIS $TZA http://t.co/SbSmMJyYaI
Langan Stocks
20 Dec 14 09:29:11
$GOOG Investor Opinions Updated Saturday, December 20, 2014 12:03:25 PM $ABBV $DBA $PFE $SMN http://t.co/EI5PGkNBNH
Stockaholics
20 Dec 14 09:26:05
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $DPM $FRAK $GOOG
Stockaholics
20 Dec 14 09:17:34
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $GPS $NSPR $GOOG
Shomik Ghosh
20 Dec 14 09:17:31
RT @cperruna: Digital Currency / Mobile Wallets for 2015: $AAPl, $GOOG $AMZN $V $MA
Chris Perruna
20 Dec 14 09:09:23
Digital Currency / Mobile Wallets for 2015: $AAPl, $GOOG $AMZN $V $MA
Stock Wire
20 Dec 14 09:06:03
Google Maps (GOOG) Now Lets You Tour Street View In Virtual Reality $GOOG http://t.co/T6huvj3VPy
Class Actions News
20 Dec 14 08:45:04
#google #android sued re antitrust violations. #samsung #technews #app #antitrust $GOOG http://t.co/pgtVN194Kg
Bidness Etc
20 Dec 14 08:39:23
Google Maps Now Lets You Tour Street View In Virtual Reality http://t.co/j7OA9us7gv $GOOG http://t.co/4ml6m6zqi5
Langan Stocks
20 Dec 14 08:28:41
$SLV Stock Price Updated Saturday, December 20, 2014 11:03:25 AM $XLB $DGLY $GOOG $CVX http://t.co/Q2AMe5m8sH
Rosner Stocks
20 Dec 14 08:28:40
$IEF Short Sales Updated Saturday, December 20, 2014 10:59:25 AM $SGLB $RAD $HYG $GOOG http://t.co/9HtMgFy6iT
lookn4wins
20 Dec 14 08:27:19
$HRX.TO Volume $HRX.TO Most recent stock chart and technical analysis. $UVXY $GOOG $QLD $UNH $XHB $SGDM http:/ http://t.co/ajHRecDil2
Investors Hangout
20 Dec 14 08:23:11
jim50: $GOOG Open Date=Dec-19-2014 Open=511.51 http://t.co/EgWZYSs03e
Investors Hangout
20 Dec 14 08:23:09
jim50: $GOOG Open Date=Dec-19-2014 Open=511.51 http://t.co/uwrSAKcfQj
StockNewsWires
20 Dec 14 08:23:03
$GOOG $FB $SNE: Google Maps (GOOG) Now Lets You Tour Street View In Virtual ... http://t.co/Xba2lfPg96 http://t.co/gBqoUuvuXP
ARK Web x.0
20 Dec 14 08:22:00
$FB garners 3X over $GOOG in revenue from graphics / video ads on #mobile. Positioned to be future ad king? http://t.co/NLj3eux0ME
jim50
20 Dec 14 08:21:54
$GOOG Open Date=Dec-19-2014 Open=511.51 High=517.72 Low=506.91 Close=516.35 Volume=3680100 http://t.co/6gaH8Rin63
Jake13
20 Dec 14 08:18:50
$BIB Sell? Click here to find out if $BIB is a buy hold or sell. Watching these stocks. $GOOG $GDXJ $XLI $IO.V http://t.co/5kSXELjIjb
Dan
20 Dec 14 07:50:53
$GOOG OI for maturity 12/20/2014. 565.00 Highest put. 580.00 Highest call. http://t.co/NQaXSRPBy4
leahanne
20 Dec 14 07:47:17
$VXF Extended Market Index ETF Vanguard (VXF) 88.48 +0.42 (+0.48%) $QCOM $HDLV $GOOG http://t.co/WPabrDGliN
IH News Desk
20 Dec 14 07:45:25
$KMI Financials Updated Saturday, December 20, 2014 10:11:23 AM $GILD $ABX $ONVO $GOOG http://t.co/vwml6RFlwV
[ Software News ]
20 Dec 14 07:44:25
RT @goinsidegoogle: Google goes on the hunt for auto industry partners to help it develop a self-driving... https://t.co/qP0GAO9shu $goog h…
ProTradersNews
20 Dec 14 07:38:02
$GOOG: Stocks Alert - Google (GOOG), SAFRAN (SAFRY), SanDisk (SNDK ... http://t.co/HrblIhgK8n http://t.co/upVVYcmhSv
Data Geek
20 Dec 14 07:37:26
RT @FinSentS_NASDAQ: $GOOG:US Google Says Mississippi Sales Probe Amounts to Censorship #GOOGLE INC http://t.co/ur6ZoFx4eQ #NASDAQ
FinSentS NASDAQ
20 Dec 14 07:36:59
$GOOG:US Google Says Mississippi Sales Probe Amounts to Censorship #GOOGLE INC http://t.co/ur6ZoFx4eQ #NASDAQ
SconnieTrader
20 Dec 14 07:33:38
@Nonrelatedsense $GOOG
Dan
20 Dec 14 07:32:12
$GOOG Max Pain is 520.00 for maturity 12/20/2014. Price = 516.35. http://t.co/gwUR4MAgLZ
PolgarStocks
20 Dec 14 07:28:10
$CRUS Stock Forum Updated Saturday, December 20, 2014 10:07:23 AM $SMN $SIL $GOOG $AGIO http://t.co/KqgD3Hbtyh
Langan Stocks
20 Dec 14 07:28:05
$SBUX Filings Updated Saturday, December 20, 2014 10:03:24 AM $XOM $GOOG $BIIB $SH http://t.co/JgRZ83qS5s
Michael Gilroy
20 Dec 14 07:27:55
$GOOG > entire market cap of Russia.. http://t.co/BQofwGGUtP
CloudChipotle
20 Dec 14 07:27:12
@SconnieTrader to hell with $TWTR, $GOOG should buy $SSYS
SconnieTrader
20 Dec 14 07:25:45
Question to me last night: "why doesn't $GOOG get its act together and buy $TWTR and start paying a dividend?" Hey I'm with you Pal!
FinSentS SP500
20 Dec 14 07:21:19
$GOOG:US Google Says Mississippi Sales Probe Amounts to Censorship #GOOGLE INC http://t.co/JfA85EHrTe #SP500
[ Google News ]
20 Dec 14 07:10:10
Google goes on the hunt for auto industry partners to help it develop a self-driving... https://t.co/qP0GAO9shu $goog http://t.co/TtPMHvydDi
				
				
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.