Major Labels Buy Stakes In Shazam

Three major labels are purchasing small stakes in Shazam as it prepares for an IPO, reports the Wall Street Journal.

Warner Music Group owner Access Industries, Universal Music Group and Sony Music Entertainment are each buying $3 million stakes in the company which is valued at $500 million.

Shazam is an app that helps users identify the music they hear playing from an outside source, such as from radio or television. Users can also share the song on social media, or go to another service to purchase or stream it.

Earlier this year, Warner and Shazam entered a partnership to discover new artists through the app and sign them to a joint record label.