Shazam, the maker of the popular mobile app that uses an audio technology to help users identify songs and TV shows, has received a $40 million investment from Latin American wireless giant America Movil. As part of the deal, Carlos Slim’s Mexico City-based company will work to pre-load Shazam onto mobile phones in the regions in which it operates, said Shazam CEO Rich Riley, the Yahoo veteran who was hired as CEO in April.
The investment consists of a “substantial secondary element,” though Riley refused to disclose how much of the investment happened through a secondary sale. It is believed that early employees and investors — who had shares in the 11-year-old company prior to its first venture investment — were the sellers in the secondary offering. Shazam has now raised $104 million in venture funding, with contributions from Kleiner Perkins, Institutional Venture Partners and DN Capital.
Riley said the company has substantial funds in the bank and will use the new infusion to make its app more of a destination for music fans, expand its TV partnerships and look at possible acquisitions.
While Shazam gets a cut of the $300 million in affiliate music sales its app users purchased in the last 12 months, it is focusing a lot of energy on pitching TV advertisers on its service. This is a tricky proposition, though.
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