Vevo seeks $100M for overseas expansion
Online video site Vevo reportedly is seeking to raise about $100 million to bankroll an international expansion effort.
To help secure the equity financing, Vevo hired New York-based boutique investment bank Allen & Company, The Wall Street Journal and the Los Angeles Times reported.
In addition to funding an overseas expansion, Vevo seeks capital to start original-content offerings such as streaming live concerts, the Los Angeles Times reported.
The Wall Street Journal reported that Allen & Co. has reached out to possible Vevo investors, including: Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), Google (Nasdaq: GOOG), Facebook (Nasdaq: FB) and Yahoo (Nasdaq: YHOO).
Vevo hopes to raise $100 million to $150 million, at terms that would value the company at nearly $1 billion. Another person familiar with the company's plans, however, valued the company at $700 million to $800 million, the Journal reported.
Launched in December 2009, Vevo is a privately held joint venture operated by Sony Music Entertainment (NYSE: SNE), Universal Music Group and Abu Dhabi Media, which is wholly owned by the government of Abu Dhabi.
Vevo was the 19th most visited site for May, according to video matrix rankings released last month by Internet analytics firm comScore.
In May, Vevo drew 48.2 million viewers looking at 654 million videos and spending 57.5 minutes doing so, making Vevo the No. 3 site for online video, following Google sites and Yahoo. Vevo, in May, was the No. 1 YouTube partner channel, with over 47 million unique viewers and 617 million videos, comScore data indicates.
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