YouTube Rumored To Be Investing $50 Million In Vevo [UPDATED]

[UPDATE 02/06/2013 9:10 a.m. PT] Business Week reported today that Google is negotiating a $50 million investment with VEVO. If successful, the investment will give Google less then 10 percent ownership, which would value VEVO at around $500 million.

Business Week’s sources has remained anonymous as negotiations are still underway.

[UPDATE 01/17/2013 9:00 a.m. PT] Yesterday, AllThingsD reported that Google-owned video site YouTube is looking to increase their investment in Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media joint music video provider Vevo.

According to AllThingsD, Google has arranged to purchase a minority stake in Vevo. Google currently owns a small portion of Vevo, which will make this rumored deal the second time YouTube and Google have invested in the music channel.

News of this deal seems to be extinguishing rumors that the two content distributors were parting ways following news of a contract that expired back in December. Vevo is reported as the third most-watched video site in the U.S. A round of investment from Google will only strengthen Vevo’s commitment to YouTube. Currently, among the top ten most-viewed YouTube channels, Vevo and Universal Music Group channels make up 50% of the list.

AllThingsD reports that the investment will be around $35 million. Commenting on the investment rumors, a YouTube spokesperson told NMR:

“While we don’t comment on individual negotiations, we always hope to renew our relationships with valuable partners so we can continue to provide YouTube users with the best possible music experience.”

We will continue to update as more specific word from Google and YouTube come in.

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