Google acquired music streaming startup Songza, a company that generates playlists based on a user's mood, with both companies refusing to disclose financial details.
The three-year-old app creates personalized playlists and was reportedly sold to Google for more than $39 million. The acquisition is seen as an attempt by Google to strengthen its Google Play services, especially music curation, in the face of competition from Apple, Spotify and Pandora.
Songza uses specialized algorithms to match a playlist to the time of day, and activities that the user may be indulging in, such as working, studying or exercising. Furthermore, a tie-up with the Weather Channel allows it to tailor playlists depending on the listener's current weather conditions.
"We can't think of a more inspiring company to join in our quest to provide the perfect soundtrack for everything you do," Songza said in a statement on its website.
Google's acquisition comes weeks after Apple acquired Beats Electronics for $3 billion. While Beats is popular for its headsets, experts believe Apple acquired the company for its music streaming service, Beats Music. Amazon also recently announced music streaming for its Prime members.
Google's YouTube is also expected to launch a streaming service later this year. Google said that it will keep the company independent but will find ways to integrate Songza into Google Play, YouTube and other products.