Thursday, May 31, 2012

Google, Facebook fight for stake in music service





It’s a battle of the tech brands. The NY Post reports that both Google CEO Larry Page and Facebook’s Mark Zuckerberg are exploring an investment in Vevo as part of a broader partnership with the music-video service, The Post has learned.  Sources say the search giant and the social network have held talks with Vevo — the digital equivalent of MTV — about buying an equity stake as they each compete to land an ad pact with the venture.

Vevo — a joint venture of Universal Music Group and Sony Music along with the Abu Dhabi Media Co. — is valued at about $1 billion on revenue of $150 million, according to industry sources.  Vevo licenses its content to a number of partners, including Google’s YouTube and MTV.com, in addition to streaming videos at Vevo.com and through mobile apps.

Vevo’s current deal with YouTube to host its videos in exchange for roughly one-third of the ad revenue is up at year-end. While it negotiates with YouTube to accept a smaller cut of ad sales, Vevo also has opened talks with Facebook….

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