Google to buy 10% stake in Vevo

Google's YouTube is negotiating a $50 million equity investment in music video service Vevo, according to two people with knowledge of the situation. The deal would bring additional consolidation in the online video advertising market.

Google would own less than 10 percent of the company, giving Vevo a valuation of at least $500 million, said the people, who asked for anonymity because negotiations are still early and an agreement may not be reached.

The investment would be part of a broader contract to keep Vevo’s music videos on YouTube, the people said. Vevo, formed in 2009 by Vivendi SA’s Universal Music and Sony Corp.’s Sony Music Entertainment, and Google last year extended their existing contract until April.

“While we don’t comment on individual negotiations, we always hope to renew our relationships with valuable partners so we can continue to provide YouTube users with the best possible music experience,” Chris Dale, spokesman for Google, said in an e-mailed statement.

Vevo, which shows videos from artists signed to labels owned by Sony Music and Universal Music, drew 51.6 million unique U.S. viewers in December, according to ComScore Inc., the Reston, Virginia-based researcher. By comparison, Google’s websites including YouTube had an audience of about 181.7 million.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

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