Abu Dhabi Media Company has purchased a stake in Vevo -- the music industry's version of Hulu -- from owners Universal Music and Sony. Terms of the deal were not disclosed, but MediaMemo reports that
the joint venture is being valued at $300 million. Google's YouTube isn't an owner in the JV but will share revenue in exchange for lending Vevo its massive distribution platform. The site, which will
exist both outside YouTube and within YouTube as a branded channel with its own player, is scheduled to launch later this year. Vevo has been seeking an outside money source for some time. PaidContent
previously reported the venture was looking for a $300 million valuation. According to MediaMemo, the outside money is designed in large part to allay antitrust issues, given that Vevo's existing
owners represent two of the four major music labels.
Read the whole story at MediaMemo »
