DreamWorks may try to enter the music business by buying a stake in online music purveyor Vevo, writes Peter Kafka in Re/code. Currently, Vevo is mostly owned by Universal Music Group, Sony Music and Abu Dhabi Media.
DreamWorks has been trying to widen its reach beyond its staple business in animated films for awhile. CEO Jeffrey Katzenberg has recruited an executive from Hulu, and the company has scooped up YouTube-based businesses such as AwesomenessTV. But apparently Vevo has other suitors, and its slim profit margins pose questions as to whether it would really pay off as an investment.
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—By Peter Kafka, Re/code.net.
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