The New York Post is reporting that both Google and Facebook are looking to invest in online music video service Vevo. According to the NYP's sources, Vevo has hired investment bank Allen & Co. to explore the possibilities of a partial or full sale. Another anonymous source said that the talks had happened but it wasn't clear how serious either Facebook or Google was about buying a stake.
The past few months have seen Vevo take a small step towards Facebook amidst rumors that it wil jump ship from YouTube next year. Currently Vevo, which is owned by UMG, Sony Music, and the Abu Dhabi Media Co., has an exclusive ad-revenue sharing deal with Google which expires at the end of the year. With an estimated 48 million unique viewers in April, the service is valued at around $1 billion. Vevo, Facebook, and Google have all declined to comment on the NYP's article.