Google is in talks to purchase streaming music service Songza in a deal worth $15 million, according to a New York Post report published today.
Songza creates music mixes based on a variety of themes and factors, such as your current mood or the local weather forecast. The mixes come from a combination of algorithms and human curation, which makes it similar in scope to recent Apple purchase Beats Music.
Google has no shortage of streaming music products. The company has a Google Play store that competes with iTunes and Amazon, its Google Play Music All Access premium-subscription service, a Google Music library service, and YouTube, which is technically the most popular streaming music service in the world despite focusing on video.
So, why the heck does it want to buy Songza?
Well, for at least two big reasons: First, Songza is better than All Access and more cohesive than YouTube when it comes to music. And second, Songza’s employees might be attractive to Google as it determines how to best proceed now that Apple has its own premium streaming music service in Beats.
Aside from that, Songza has a decently large active base of listeners (5.5 million per month), plus its valuation is far lower than major streaming music competitors Pandora ($5 billion market cap) and Spotify ($4 billion valuation).
Alternately, a Songza acquisition could factor into Google’s rumored plans to launch a standalone YouTube music service.
We’re reaching out to both Songza and Google for confirmation and will update the post with new info as it comes.
Founded in 2007, the New York City-based startup has raised a total of $6.7 million in funding from Amazon, Metamorphic Ventures, Lerer Ventures, and others as well as a slew of notable individuals such as Gary Vaynerchuk, Lady Gaga’s manager and frequent music startup investor Troy Carter, and Justin Bieber’s manager Scooter Braun.
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