Google to invest in Vevo

YouTube is making discussions on a $50 million equity investment in Vevo LLC, a music video service.

According to a source familiar with the setting, YouTube’s mother company, Google would be owning less than ten percent of Vevo. This gives Vevo an assessment of a minimum of $500 million. The discussion is still ongoing.

Moreover, the investment would be a probable part of a wider agreement in keeping the music videos of Vevo on YouTube.

Vevo, which was started in 2009, was formed by Sony Music Entertainment of Sony and Universal Music of Vivendi SA. Just last year, Google extended the contract until April.

A spokesperson from Google stated in an emailed statement, Chris Dale,
even though they do not give any comments on separate discussions, they always are hoping to renew the connection with valued partners in order to keep on providing users of YouTube with the best imaginable music experience.

Google to invest in Vevo

On the other hand, a spokesperson from Vevo refused to comment with regard to the discussion.

ComScore Inc.’s data shows that Vevo attracted 51.6 million U.S. viewers in December.

Google’s stock increased by 0.9 percent to $765.74.

 

 

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