Google vs. Apple: Internet Search Company Acquires Songza to Rival Beats

Jul 02, 2014 09:19 PM EDT | Matt Mercuro

Google has purchased streaming music service Songza to try playing a bigger role in the growing online music business.

Google announced on July 1 that it would "explore" new ways to incorporate aspects of Songza into its current streaming music service over the next couple of months, according to Reuters.

For now though, the four-year-old Songza service will remain unchanged for current users.

Songza creates "expert-curated" music playlists designed to match a users' tastes and activities.

Google has not officially confirmed the financial terms of the deal, though a report by the New York Post from June cited unnamed sources said Google placed an offer to purchase the company for $15 billion.

The deal comes just a month after Apple acquired Beats for $3 billion, which was viewed as the iPhone-maker's way of jump-starting its position in the fastest-growing segment of the music market.

Sales of digital downloads have dropped in recent months, while streaming services like Spotify and Pandora have become popular with consumers around the world.

Google failed to say how many employees Songza had, but did say the company would continue to work from its base in New York.

Google launched its Play All Access subscription music service in 2013, which goes for $9.99-per-month, and last month the company confirmed its YouTube website was preparing to launch a paid streaming service.

Make sure to check back once the terms of the deal have been announced by Google.

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