The media are reporting that transaction values the joint venture at $300 million. Terms of the agreement were not disclosed. Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the music video content that will leverage the existing traffic of Google's YouTube as partner.
Their full press release follows:
Abu Dhabi , 19 October, 2009: VEVO, the new premium music video and entertainment service powered by YouTube, has received a strategic investment from Abu Dhabi Media Company (ADMC), one of the world�s fastest growing, multi-platform media organizations. The announcement was made today by Doug Morris, Chairman & CEO of Universal Music Group and Co Chairman Founder of VEVO, Rolf Schmidt-Holtz, Chief Executive Officer of Sony Music Entertainment & Co Chairman of VEVO, Rio Caraeff, President & Chief Executive Officer of VEVO, H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, and Edward Borgerding, Chief Executive Officer of ADMC. Terms of the agreement were not disclosed.
With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as founding shareholders. Funding from the shareholders will enable VEVO to come to market with an attractive premium music offering for consumers and advertisers alike.
Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the very best in top notch music video content that will leverage the massive existing traffic of YouTube.
This global partnership flags Abu Dhabi Media Company s commitment to establish a leading position in the digital media industry. It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company, and it illustrates our partnering approach with innovators in digital media services and technologies , stated H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, on joining UMG and SME to create VEVO.
It s a credit to the music community, and to the global opportunity that VEVO represents, that we have been able to attract such a solid investment partner with the vision and track record of Abu Dhabi Media Company, commented Rio Caraeff, President & Chief Executive Officer of VEVO. Abu Dhabi Media Company brings to the venture important funding support and a team with enormous global media experience and insight, and we look forward to working with them to seize the many opportunities ahead of us.
Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world. VEVO will redefine the way premium music video entertainment is consumed, created and shared in a global community of music audiences, said Edward Borgerding, Chief Executive Officer of Abu Dhabi Media Company
We're now entering a new exciting phase in the digital media industry in the region and we're determined to be at the forefront of it , added Ricky Ghai, ADMC's Executive Director, Digital Group. With VEVO there s real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online. The potential rollout of a localized VEVO portal across our region will help to cement ADMC�s position as a leading digital media company.
Launching later this year, VEVO is the innovative online premium music video and entertainment destination for consumers, advertisers and content owners that blends the very best in top-notch music content with YouTube�s leading edge video technology and user community. The content will be made available on YouTube through a newly created VEVO channel, on VEVO.com, the service�s marquee destination site, and through a special VEVO branded embedded player. The service will also serve as a syndication platform for additional internet destination sites, expanding the reach of the VEVO brand across the worldwide web. VEVO is a partnership between Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Company.
About Abu Dhabi Media Company
Abu Dhabi Media Company is one of the fastest growing, multi platform media organizations in the region created in 2007 as a public joint stock company from the assets of Emirates Media Incorporated.
Abu Dhabi Media Company owns and operates a range of television channels (Abu Dhabi Al Oula, Abu Dhabi Al Emarat, Abu Dhabi Al Riyadiya, Abu Dhabi Al Riyadiya 2, Abu Dhabi Al Riyadiya 3 Abu Dhabi +1 and National Geographic Abu Dhabi) and a network of radio stations (Abu Dhabi FM, Emarat FM, Star FM, Holy Quran FM), as well as number of publications (Al Ittihad newspaper, The National Newspaper, Zahrat Al Khaleej magazine, Super magazine and Majid magazine) and a number of other media related businesses including Imagenation Abu Dhabi that will develop, finance and produce full length feature films and digital content for Arabic and international markets LIVE which owns a fleet of outdoor HD broadcast vans a state of the art printing press, United Printing Press, and a joint venture with Gazillion Entertainment to form the region s first Massively Multiplayer Online Games (MMOG) Studio. Abu Dhabi Media Company employs 2098 people across its operating units which include publishing, television, radio, digital media, distribution, and printing. The company is headquartered in Abu Dhabi with offices in Cairo, Dubai and Washington D.C.
Previous Post: Egypt investors acquired stake in UK gold miner company for $3.1 million
Next Post: Presentation - Global Developments and Regional Prospects for Markets, Businesses and Private Equity