Skip to main content

Vevo no longer for sale as platform continues to grow

The owners of Vevo have halted the sale process for the second successive time, after concluding that the service is likely to continue its rapid growth.

The platform's four owners, Universal Music, Sony Music Entertainment, Google and the Abu Dhabi Media Group, will retain the holding as it is, after ending all sale talks.

Read more: YouTube reportedly threatens to shut out indie music labels within days

Vevo is well-known as one of YouTube's most popular music destinations but it also hosts VevoTV, a US-only 24-hour Internet television channel aimed a youth-orientated audience.

The New York-based Vevo, which had 227 million viewers as of 31 December last year, is expected to reveal plans for a global roll-out soon.

The proposed sale had attracted several content-orientated companies such as, Liberty Media and Guggenheim Digital Media alongside Dreamworks Animation boss Jeffrey Katzenberg and digital investor Peter Chernin.

It was organised by Goldman Sachs and the Raine Group, after a previous attempt run by Allen & Co. was also abandoned.

The platform was launched back in 2009 by Universal Music and has since grown swiftly in popularity, emerging as the fifth largest destination on the web.

"We just watched this space explode and realized given how much traffic this gets on YouTube, along with the mobile play, this could be highly valuable," said a source close to the company.

According to ComScore's July data, the platform attracted 43.5 million unique visitors, placing it behind Google, Facebook, AOL and Yahoo.

While Vevo currently receives most of its traffic via YouTube, sources indicate that CEO and president, Rio Caraeff is trying to decrease its reliance on the video streaming site.

Read more: Spotify and iTunes Radio boost US audio streaming market by 50%

Vevo's revenue for 2014 is predicted to be around $350 million (£210 million).