YouTube renews Vevo deal, invests in music video site
The deal, which ensures the music-video site's videos stay on YouTube, includes an unspecified investment by Google.
Google confirmed Tuesday that YouTube has renewed its agreement with Vevo, ensuring that the music-video site's videos stay on YouTube.
As part of the deal, Google will make an investment in the joint venture owned by Universal Music, Sony Music Entertainment, and Abu Dhabi Media Group. Terms of the investment were not revealed, but Billboard, which first reported on the deal, speculated the investment to be between $40 million and $50 million, in line with about a possible investment.
"We made an investment in Vevo," Google said in a statement. "We are excited by their future prospects and to provide YouTube users with the best possible music experience."
Rumors had been swirling for months that Vevo was looking to raise some cash and that Google might just be the company to provide it. The New York Post reported in May 2012 thaton a valuation of $1 billion. It was believed at the time that Facebook might also try to acquire equity in Vevo.
Vevo is the third most-watched video site in the U.S., with 52 million viewers for the month of March, according to ComScore. Tops was Google, with 153.9 million viewers, largely through its YouTube operation, and second was Facebook, with 63.8 million viewers.
Updated at 11 p.m. PT Added Google confirmation and comment.