Google Makes Investment In VEVO, Renews DealBy: Chris Crum - July 8, 2013
YouTube partnered with Universal and Sony back in 2009 for the launch of music video site VEVO. Since then, VEVO has been one of Google’s top YouTube partners, but with an expiration of that partnership looming, uncertainty has surrounded the future of YouTube’s partnership with the joint venture throughout 2013.
That uncertainty can now be put to bed, as YouTube has renewed its deal with VEVO and taken a stake in the company. TechCrunch reports that YouTube has confirmed this, and shares the following statement from the company:
“We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience.”
That last part is of particular importance, given how much people watch music videos on YouTube. If those went away, we’d be talking about a pretty substantial amount of YouTube views.
Google did not mention the exact amount of its investment, but earlier this year, Billboard suggested it would be between $40 million and $50 million (something like a seven percent stake in the company). Likewise, Bloomberg BusinessWeek reported in February that Google could invest $50 million in VEVO.