Vevo to get investment from Facebook, Google?
A possible equity stake is being discussed as Google and Facebook vie to win an ad deal with the video service, according to the New York Post.
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Google and Facebook are both exploring the possibility of an investment in music video service Vevo, according to the New York Post.
An investment would be part of a broader partnership, the Post reported today, citing unspecified sources. It could take the form of an equity stake, as Google and Facebook -- both of which have held talks with Vevo -- vie to win an ad deal with the video service, according to the newspaper.
The Post's sources say that an outside investor could help defray the costs for Vevo to expand to multiple platforms and to acquire music rights outside of its home base. The story puts Vevo's value at about $1 billion on revenue of $150 million, per the Post's industry sources.
Vevo is the third most-watched video site in the U.S., with 49.5 million viewers for the month of April, according to ComScore. Tops was Google, with 157.7 million viewers, largely through its YouTube operation, and second was Yahoo. Facebook came in just behind Vevo, with 44.3 million viewers.
YouTube helped create Vevo's back end, and Vevo's videos are best-known for appearing on YouTube.
In March, Vevo had a big moment when its music videos, including clips from three of the four largest record labels, got the go-ahead to reappear at MTV.com and its other Web sites.
At that time, my colleague Greg Sandoval reported that negotiations were continuing between Vevo and Google's YouTube, though they needn't be in a great hurry, since Vevo's existing contract with YouTube doesn't expire for a year.
And talks between Facebook and Vevo are also nothing new. Sandoval reported in January on discussions between the companies about moving Vevo away from YouTube and over to Facebook.