Google Renews VEVO Deal, Gains 7% Stake With ~$50 Million Investment

By 07/03/2013
Google Renews VEVO Deal, Gains 7% Stake With ~$50 Million Investment

Google is making sure no other platforms can get their hands on its most popular multi-channel network. It has renewed its deal with VEVO, securing its partnership with the music video distribution platform thanks to an investment worth somewhere in the range of $40-$50 million.

Google’s deal with VEVO expired in February, and the network was linked to deals with Billboard and Facebook before Google swooped in to re-up with one of its top assets. In addition to the large investment, Google will also gain somewhere between 7% and 10% stake in VEVO, further entwining the two companies.

“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.”

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VEVO’s library includes music videos from Sony and Universal, which have racked up billions of views and attracted the majority of the network’s 50.2 million US viewers; that figure makes VEVO the most popular MCN in the US. Expect it to use its newfound capital to expand its international presence and continue its original video presence; it has made premium content a priority since it launched VEVO TV back in March, and it now has the cash it needs to build out that part of its presence.

Photo credit: Red Antler

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