YouTube might soon invest some cash in Vevo, according to a new report.
Google's video site could invest $50 million in Vevo, a joint venture established by Universal Music and Sony Music Entertainment, Bloomberg is reporting today, citing people who claim to have knowledge of their negotiations. In return for the $50 million, YouTube would acquire less than 10 percent of the company, indicating Vevo might be valued at over $500 million.
Perhaps more importantly for Google, the deal would also ensure that Vevo's music videos stay on YouTube, according to Bloomberg.
Rumors have been swirling for months that Vevo is looking to raise some cash, and Google might just be the company to help it do so. In May, for example, the New York Post reported that Google was looking to acquire an equity stake in Vevo on a valuation of $1 billion. It was believed at that time that Facebook might also try to acquire equity in Vevo.
The YouTube-Vevo investment rumor was rekindled last month in a report from All Things Digital. That report didn't include mention of the possible investment.
CNET has contacted YouTube for comment on the Bloomberg report. We will update this story when we have more information.
YouTube mulling $50 million investment in Vevo -- report
This article
YouTube mulling $50 million investment in Vevo -- report
can be opened in url
http://newstetricous.blogspot.com/2013/02/youtube-mulling-50-million-investment.html
YouTube mulling $50 million investment in Vevo -- report
