Vevo is an upcoming music video website that is being put together by YouTube, Sony Entertainment, and Universal Music. At the end of August, the company CEO Rio Caraeff was rumored to be flying around the world in order to find potential investors at a $300 valuation. And today a press release has been announced about a funding deal.
Abu Dhabi Media Company bought a stake in Vevo and the funding round is rumored to give the company a $300 valuation. Sony and Universal Music both own stake, but Google does not. Google is on a revenue-sharing agreement with Vevo by providing the YouTube massive distribution platform. The full press release is available after the jump.
VEVO PARTNERS WITH ABU DHABI MEDIA COMPANY
Abu Dhabi Media Company Joins Universal Music Group and Sony Music Entertainment
for World Class Online Premium Music Service
New York, New York, Monday, October 19, 2009?VEVO, the new premium music video and entertainment service powered by YouTube, has received a strategic investment from Abu Dhabi Media Company (ADMC), one of the world?s fastest growing, multi-platform media organizations. The announcement was made today by Doug Morris, Chairman & CEO of Universal Music Group and Co-Chairman/Founder of VEVO, Rolf Schmidt-Holtz, Chief Executive Officer of Sony Music Entertainment & Co-Chairman of VEVO, Rio Caraeff, President & Chief Executive Officer of VEVO, H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, and Edward Borgerding, Chief Executive Officer of ADMC. Terms of the agreement were not disclosed.
With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as founding shareholders. Funding from the shareholders will enable VEVO to come to market with an attractive premium music offering for consumers and advertisers alike.
Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the very best in top-notch music video content that will leverage the massive existing traffic of YouTube.
?This global partnership flags Abu Dhabi Media Company?s commitment to establish a leading position in the digital media industry. It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company, and it illustrates our partnering approach with innovators in digital media services and technologies?, stated H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, on joining UMG and SME to create VEVO.
?It?s a credit to the music community, and to the global opportunity that VEVO represents, that we have been able to attract such a solid investment partner with the vision and track record of Abu Dhabi Media Company,? commented Rio Caraeff, President & Chief Executive Officer of VEVO. ?Abu Dhabi Media Company brings to the venture important funding support and a team with enormous global media experience and insight, and we look forward to working with them to seize the many opportunities ahead of us.?
?Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world. VEVO will redefine the way premium music video entertainment is consumed, created and shared in a global community of music audiences,? said Edward Borgerding, Chief Executive Officer of Abu Dhabi Media Company
?We?re now entering a new exciting phase in the digital media industry in the region and we?re determined to be at the forefront of it?, added Ricky Ghai, ADMC?s Executive Director, Digital Group. ?With VEVO there?s real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online.?