We hear that video site Veoh is trying to raise $40 million, at a proposed valuation of $150 million; we’re told the company has hired Bear Stearns to put the round together. Veoh declined to comment.
If this pans out, we’d love to know where that money is going. The company has already raised about $40 million so far — $26 million of that in a C round last spring led by Goldman Sachs.
While Google’s YouTube continues to grow, Veoh’s traffic (and most other video sites’) looks flat . It’s also minuscule compared to YouTube. In December the site pulled in 2.1 million uniques and served up 58 million streams (per Nielsen); YouTube had 67 million uniques and 2.6 billion streams. On the plus side, Veoh does have deals with Viacom, which is still suing YouTube.
Former Disney chief Michael Eisner is an investor and serves on its board; former Viacom execs Tom Freston and Jonathan Dolgen are also invested, along with Time Warner (TWX) Spark Capital and Shelter Capital Partners.
Update: Bijan Sabet, whose Spark Capital is a Veoh investor, tells us that Nielsen underestimates Veoh, and ciites these numbers from its server logs: “Veoh’s audience grew rapidly to 21million unique monthly viewers from 2.5M in the beginning of the year. That is a world-wide number but a big big chunk of that is from the US market…users are watching >30million hours of content per month on the Veoh network.”
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