Apple may acquire Swell
As companies strive to stay competitive in the marketplace, some may turn to a merger or acquisition deal to obtain technologies that will allow them to strengthen their business. It was announced recently that Apple may be purchasing an app called Swell, according to an article in Tech Crunch.
Swell is an application that allows users to listen to radio content based on their preferences, which it determines through ratings and use of an algorithm, according to the company's website.
According to an article in Business Insider, the motivation behind this deal could be to help Apple improve iTunes and podcasts. The article makes the important point that this deal could help Apple stay competitive against other streaming radio services.
This acquisition is also said to be an acqui-hire, as members of Swell will go on to join Apple and the Swell application is going to be shut down. It has been discussed previously that an acqui-hire is a way for companies to gain talented team members, even if in some cases the specific technology the acquired company produced won't go on to be used by its new owner.
The news of the possible deal was first reported by Re/code. It is said that the deal could be for as much as $30 million. With this acquisition, Apple could look to gain technology it needs to enhance its services, in addition to a talented team that will help the company work on ways to stay competitive in the streaming radio market.
In today's world, technology and business change at a rapid pace. Companies considering a business merger or acquisition can rely on a trusted M&A advisor to help develop a viable acquisition strategy.