Google May Invest $50 Million In Vevo [Report]
Rumor has it that Google may invest as much as $50 in Vevo, the music video property founded by Universal and Sony.
Bloomberg BusinessWeek is reporting that the company is in talks to do so, citing two people with knowledge with the situation. This would reportedly put Google owning less than 10% of the company, and give Vevo a $500 valuation.
Of course, the deal would keep Vevo, an important YouTube partner, pumping music videos into Google’s major video site (which has become a more important property for the company than ever in recent years).
As reported in December, the contract between YouTube and Vevo was set to expire, but the contract also had some kind of four-month extension clause, which would really push the deadline a bit further in the future. Either way, it’s still looming.
Bloomberg shares a statement from YouTube’s Chris Dale, who says, “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.”
Earlier this week, Vevo announced a new partnership with Disney, which will see Disney curating family-friendly music video content on Vevo, and Vevo providing music videos to Disney.com. The two will also collaborate on original programming.