Google ( NASDAQ : GOOG ) has been rumored to buy a music streaming service called Songza. Reports emerged from the New York Post claiming that they have ground news about the Internet giant closing a deal on Songza for $15 million. Although Google denied to comment on it, it seems like the company is following the footsteps of Apple Inc., which recently purchased the Beats Music and Beats Electronics for $3 bn.
Songza, which is not like many other music streaming services, has playlist compiled by some of the most talented and famous artists in the industry. It does play songs according to the user’s mood, location, time of the day and lifestyle. Songza has more than 5 million active users.
Reports also suggested that the amount is expected to go higher than its rumored. New York Post reported that the deal might also get closed at $20 million, $15 million cash and remaining in shares.
Even though Songza is as popular as other music streaming services, including Spotify and Pandora, the evaluation for it is too low, the other two competitors, Spotify and Pandora, were evaluated at $4 billion and $5 billion respectively. It would interesting to see if Songza settles for in $20 million.