Google and Facebook are considering a joint investment in Vevo, the online music video service. The deal “could be part of a broader advertising partnership with the music service,” according to The Hollywood Reporter.
Reports suggest that Vevo recently hired investment bank Allen & Co. to explore options such as bringing in new investors, selling and going public. The scope of Google and Facebook’s interest is unknown.
“An investment could allow Vevo, a joint venture of Universal Music Group, Sony Music and Abu Dhabi Media, to fund an expansion onto further platforms and the purchase of additional music rights,” notes the article. The result could value Vevo at about $1 billion.
Vevo has an ongoing deal with Google’s YouTube “to host its videos in exchange for about a third of the ad revenue,” explains THR. But Vevo hopes to reduce YouTube’s cut of that ad revenue when the current agreement ends at the end of the year.
Google and Facebook are considering a joint investment in Vevo, the online music video service. The deal “could be part of a broader advertising partnership with the music service,” according to The Hollywood Reporter.
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