VEVO SEEKS $500M IN NEW FUNDING AHEAD OF SUB-SERVICE LAUNCH

Vevo has brought in Goldman Sachs to secure aa much as $500 million from new investors, sources told the Financial Times. The video service hopes to raise between $300m and $500m to fund international expansion, potential acquisitions and the development of new mobile and TV services.

The round of fundraising comes as Vevo—primarily owned by UMG and Sony Music, each with a 40%+ stake—develops a paid subscription service.

YouTube is the primary online gateway to Vevo content. But Vevo wants to become more self-sufficient and to distance itself from YouTube, whose parent company Google has a small stake in Vevo, and which recently launched its own premium music service.

Vevo has become more comprehensive in its offerings—and better able to compete with YouTube—after recently securing the rights to Warner Music content. The company hopes to launch its sub service before the end of the year.