As it seeks to expand overseas, Vevo, the online music video company owned by Universal Music Group, Sony Music and Abu Dhabi Media, is reportedly looking for new equity investors.
One source close to the firm tells The Wall Street Journal that Vevo has hired boutique investment bank Allen & Co. to look for a buyer of a 10-15 percent stake worth $100 to $150 million, valuing the music video site at close to $1 billion. Another source pegged the company's current value at $700 to $800 million.
The short list of possible investors includes Facebook, Yahoo, Amazon, Apple and Google, the report said, although none of the companies mentioned commented on the rumors.
One of the sources added that despite the rumors, none of Vevo’s owners are planning to sell their stakes, which would be diluted following the arrival of another equity investor.
Vevo is on pace to generate $280 million in revenue in 2012, one of the sources said, up from $150 million last year. As of the end of May, the site had 226 million unique visitors and 3.1 billion of its videos were watched worldwide, according to comScore, a research firm.