Reports: Google wants to buy a chunk of VEVO
Google (Nasdaq: GOOG) is reportedly looking to put $50 million into music video service VEVO, with the goal of keeping VEVO's music videos on its YouTube online video service.
According to "two people with knowledge of the situation" who spoke with Bloomberg, the $50 million would give Google less than a 10 percent stake in VEVO, which this week announced a deal with Walt Disney Co. (NYSE: DIS). VEVO is a collaboration of Vivendi's Universal Music and Sony's Sony Music Entertainment. Google's deal with the company currently runs through April.
Google declined to comment directly on the reports.
"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," Google spokesman Chris Dale wrote in an email to Bloomberg.
And that was more than VEVO had to say. A New York-based spokeswoman declined to comment.
A recent ComScore tally showed VEVO with an audience of 51.6 million unique U.S. viewers in December. YouTube led the way in that space with about 181.7 million unique viewers during the last month of 2012.
- Bloomberg carried this story