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Business News Digital Labels & Publishers
Universal and Sony may be considering a Vevo sale
By Chris Cooke | Published on Friday 21 June 2013
Universal Music and Sony Music are considering whether to sell on their respective stakes in the Vevo company, according to Hits Daily Double.
Of course there has been speculation for a while that the two mega-majors may look to cash in by selling their shares in the music video platform they co-founded, best known for managing a big chunk of the official music video output on YouTube, but also busy building its own audience via a proprietary website and various apps.
It’s known that Vevo is looking to bring in new investors to fund further global expansion, but HDD reckons that the outcome of ongoing conversations with investment types might be that Sony and Universal actually offload their stakes in the company, which would deliver an immediate pay-back, while Vevo would continue to be an important revenue stream for the major music firms.
HDD notes that Guggenheim Partners, already tipped as a possible new investor in Vevo, might be interested in taking control of the company, which would provide a platform to further develop the investment firm’s other music assets, in particular the award shows it owns via its stake in Dick Clark Productions. Time will tell.
