WASHINGTON (AFP) - Abu Dhabi Media Co. (ADMC) announced Monday that it has made a "strategic investment" in VEVO, the online music video partnership between Universal Music Group and Sony Music Entertainment.
"With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Company as founding shareholders," Universal, Sony and ADMC said.
The amount of the investment by ADMC, which is owned by the government of the United Arab Emirates, was not disclosed but Wall Street Journal-owned blog MediaMemo said it valued VEVO at 300 million dollars.VEVO is scheduled to launch in the United States and Canada later this year and will feature music videos from Universal, a subsidiary of France's Vivendi, and Sony Music.
Google-owned YouTube will provide the technology for VEVO."This global partnership flags Abu Dhabi Media Company's commitment to establish a leading position in the digital media industry," ADMC chairman Mohamed Khalaf al-Mazroui said in a statement.
"It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company," he said."With VEVO there's real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online," said Ricky Ghai, ADMC executive director, digital group.
ADMC owns television and radio stations, newspapers and magazines and employs more than 2,000 people.
