Report: Vevo looking to raise up to US$500m

Online music video service Vevo is reportedly looking to raise between US$300 million and US$500 million in capital from new investors.

According to a Financial Times report, Vevo has hired hired Goldman Sachs and is looking to raise the cash to fund its international expansion, to develop new mobile and TV services and on potential acquisitions.

Vevo, which has not commented on the report, is majority-owned by Universal Music Group and Sony Music entertainment and earlier this month agreed a licensing deal with Warner Music Group that will see videos from the third major record label distributed on Vevo.

Last April former Intel TV and BBC digital chief Erik Huggers joined Vevo as CEO and speaking at the Code/Media conference in February, he said that Vevo is planning to launch a subscription-based offering to complement its ad-supported business.

“The move towards subscription, a premium product – that’s something we’re very interested in and very much working towards,” said Huggers at the conference. He added that Vevo believes in a “dual revenue stream” to build on the company’s progress in 2015 – which he said was the “absolute biggest year in Vevo history”.