According to TechCrunch, the $400 million deal could be finalized over the weekend and officially announced on Monday.
Apple will benefit from acquiring Shazam's music and sound recognition technologies and will likely integrate them into future iOS releases, TechCrunch stated.
In addition, Apple will likely save money on commissions paid Shazam when users are redirected to the iTunes store to purchase content. A majority of Shazam's 2015 revenue came from iTunes redirect fees, the Wall Street Journal reported.
Shazam has traditionally sent users to rival popular streaming services including Spotify and Google Play Music. If Apple shuts down Shazam after acquisition, it will diminish revenue to rival music apps, noted the New York Times.
Earlier this year, Shazam implemented augmented reality technology that allows users to scan magazines, books, posters, advertisements and other tangible products.
"Shazam's new platform can bring any marketing materials to life-products, packaging, POS, advertising, events and more-just by utilizing the app to scan unique ‘Shazam Codes.' The codes are capable of delivering augmented reality experiences including 3D animations, product visualizations, mini-games and 360-degree videos," Shazam explained in a March press release.
"We knew we were on to something big when we released visual image recognition in 2015," said Shazam CEO Rich Riley. "With the rapid rise of augmented reality, it is a natural evolution for Shazam to be a first-mover in delivering AR at scale."
If Apple wanted to launch its own version of Google Lens, an app that allows devices to visually recognize objects, Shazam's augmented reality technology patents will likely be incorporated.