Google Acquires Startup Songza For Undisclosed Amount

Startup - Songza

by
July 1, 2014

After weeks of speculation, Tuesday Google announced its plans to acquire Delaware startup corporation Songza Media Inc. The startup offers a free service which allows users to play songs based on a specific playlist. Users have the ability to choose what songs they would specifically like to hear.

The terms of the deal have not been released. Initially, rumor had it Google was reported to spend $15 million to purchase the startup. However, with the threat of other acquisitors, it is possible that Google paid even more.

Originally launched in 2007 as an online streamer of music, the company now offers a Concierge feature that creates the perfect playlist for users at the appropriate time to approximately 5.5 million users. For a weekly subscription of $.99, users can opt out of the service’s advertisements. The company has raised over $6.6 million in funding from investors including Amazon, Scooter Braun, and Lerer Ventures.

The startup’s technology gathers contextual information about users based on seven factors: their mood, the weather, time of day, day of week, device being used and geographical location to generate appropriate playlists. In addition, experts analyze listeners’ past behavior based on previous use of the site and what other listeners have done previously.


Startup - Songza

Songza is unique in that rather than offering a traditional algorithm generated playlist such as Pandora and Spotify, it uses music experts such as DJs and writers to create the perfect playlist for users. Users can access Songza through the web, Chromecast, or through their iOS and Android phones. 

With technology moving to incorporate the Internet into every device we own, Songza will be a great asset to Google who constantly aims to integrate seamless technology into users’ lives. Rather than having users work to receive music, Songza aims to effortlessly provide users with music.


In a company statement released today, Google stated: “We aren’t planning any immediate changes to Songza, so it will continue to work like usual for existing users. Over the coming months, we’ll explore ways to bring what you love about Songza to Google Play Music.” Google goes on to say that they are looking for ways to incorporate Songza into YouTube and other Google products.

Google has not yet commented on the fate of current Songza employees. However, for the time being, Songza will remain operating out of its Long Island City office until it eventually moves to Google’s New York City headquarters.

 

 

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