Google's YouTube has renewed its contract with music video distributor Vevo, and taken a stake in the company. While details were not disclosed, reports suggest that under the new deal, Google will get a 7% stake in Vevo for a $40-50 million investment.
"We made an investment in Vevo," said YouTube in a statement. "We are excited by their future prospects and to provide YouTube users with the best possible music experience."
Vevo has been on the hunt for cash to fuel an international expansion, The company, funded by Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Group, retained Allen & Co. earlier this year to explore the capital markets.