Vevo, the largest destination for official music videos online, is about to hit the road in search of equity financing in order to fund its international expansion plans, according to sources familiar with the company’s plans.
Vevo, which is currently in heavy negotiations to sew up a new distribution contract with Google’s YouTube network, has approached about a dozen of potential investors, including Google itself, Allen & Co., and Guggenheim Partners, executives knowledgeable with the companies confirmed. Guggenheim owns Prometheus Global Media, Billboard's parent company.
The fundraising effort is in its very early stages as meetings are just now being scheduled for the next several weeks. The only discussions that have advanced to the level of dollars and cents has been with Google, which involves the Silicon Valley technology giant paying $50 million for 7% of Vevo, giving Vevo a valuation of roughly $714 million.