YouTube and its parent company, Google, are about to buy a chunk of rival video platform, Vevo, AllThingsD reports.ATD’s Peter Kafka doesn’t know the size of the deal, but he believes it will exceed $35 million.
The two companies have had an interesting, and at times clashing, relationship for the past three years. This deal would make them strategic partners. Vevo would be able to spread its videos far and wide across YouTube’s network, and YouTube could continue using Vevo’s popular music video content.
The deal hasn’t been finalised, but Kafka says Vevo, YouTube and Google are all on board, and they’re renewing a distribution contract.