Google to Possibly Buy Streaming Music Service Songza for $15 Million

Google is reportedly in discussions to buy streaming music service Songza for $15 million.

Songza uses different themes and factors to produce mixes of music, such as the user's mood at the time or the local weather forecast, according to Venturebeat.

A combination of curation and algorithms is used to create the mixes.

Music curation is the process in which a subscriber's songs are chosen, and is a competitive tool in the streaming market, The New York Post reported.

The Long Island-based service currently faces competition from major streaming music services like Spotify and Pandora. Spotify recently hit 10 million active users, while Pandora has 77 million active users.

"Google is offering them around $15 million, the question is, does Songza take it?" said one source with knowledge of the conversations.

Google already has a number of streaming music products, such as its Google Play Music All Access premium subscription service, a Google Music Library service, and the video-sharing website YouTube. The search giant also has a Google Play Store, Venturebeat reported.

Songza has 5.5 million active users per month. Since its founding in 2007, the company has raised $6.7 million in funding from Amazon, Lerer Ventures, Metamorphic Ventures, and other larger companies. The startup has also received funding from Gary Vaynerchuck, manager for Lady Gaga, Scooter Braun, manager for Justin Bieber, Troy Carter, a frequent investor in music startups, and other notable individuals.

The service also offers music mixes for other states of being, such as "working in the office" or "boosting your energy," The New York Post reported.

Songza was the first significant streaming service to be released in Canada. The service gained a million downloads within the first three months of its 2012 launch.

The rumored acquisition would follow Apple's purchase of Beats Electronics for $3 billion, The New York Post reported.

Elias Roman, CEO of Songza, and Google declined to comment on the reported deal.

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Google, Music
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