Google Inc. is currently in talks to invest $50 million into music video service Vevo LLC. Google would own less than 10% of the company as part of the investment and would give the music video website a valuation of about $500 million according to sources with Bloomberg. The negotiations are still in early stages.
The investment is part of a broad contract to keep Vevo music videos on YouTube. Vevo was formed in 2009 by Universal Music Group, Sony Music Entertainment, and Google. Last year a contract was extended until April.
Vevo it around 51.6 million unique U.S. viewers in December according to comScore. “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,? stated Google spokesman Chris Dale in an e-mailed statement to Bloomberg.