DreamWorks Animation is looking to acquire a piece of music and content distributor Vevo, reports Re/code.
According to sources, earlier this week DreamWorks CEO Jeffrey Katzenberg made an undisclosed bid for the company, which is owned primarily by Universal Music Group, Sony Music Entertainment, and Abu Dhabi Media.
Sources say other potential investors in Vevo include John Malone’s Liberty Media Corp. and former News Corp. executive Peter Chernin's the Chernin Group.
Last year, it was announced that Google had not only renewed its agreement with Vevo to keep the latter's videos on YouTube, but that the company would also invest in the business side of Vevo. The investment was reportedly worth between $40 million and $50 million, giving the Silicon Valley technology company a roughly 7% stake in Vevo.
Around the same time, Guggenheim Digital Media, a division of Guggenheim Partners LLC (which owns Billboard, among other properties) was also allegedly interested in acquiring a controlling stake in Vevo, according to insiders familiar with the matter.
In 2013, DreamWorks, looking to expand beyond animated films, tapped Universal Music Group CEO Lucian Grainge to serve on its board of directors in addition to purchasing Nickelodeon's Awesomeness TV -- home to Russell Simmons' recently launched All Def Digital YouTube channel -- for $100 million.
At this point, it is unclear whether DreamWorks seeks a majority or minority holding in Vevo. Company representatives declined to comment on the matter to Billboard. Whatever the share, it wouldn't be a bad investment on DreamWorks' part, given the news as of Friday, April 11 that internet ad revenue had, for the first time, surpassed that of broadcast television.
As of last year's November comScore report, Vevo ranked fifth on the list of online video destinations with 49 million unique viewers across 650 million videos.