February 6, 2013
Talks Also in Progress With Music Video Service Vevo
Google will soon be the proud owner of Channel Intelligence, for a cool $125 million in cash.
Channel Intelligence — which tracks nearly 15 percent of U.S. transactions online, driving $2 billion in referred sales online annually — is clearly a bid by the search engine company to boost Google Shopping.
In a statement to WebProNews, a Google spokesman said the purchase will allow the company to “help consumers save time and money by improving the online shopping experience.”
“We think Channel Intelligence will help create a better shopping experience for users and help merchants increase sales across the web,” the spokesman said.
The acquisition is expected to be complete in the first quarter of this year.
“I am thrilled to see the recognition of value for what this company has accomplished,” said founder and chairman Rob Wight in a press release.
“Our vision for CI started with the desire to simplify the online shopping experience. Under the leadership of Doug and ICG, CI greatly enhanced its value proposition to its customers and partners. I am very proud to see our vision executed to this great outcome.”
Meanwhile Google is also said to be in talks with music video service Vevo. The search engine giant is negotiating a $50-million equity investment with the company to keep Vevo’s music videos on YouTube, according to sources quoted by Bloomberg.
Under the potential deal, Google would own less than 10 percent of Vevo, said the sources who requested anonymity from Bloomberg because there is no guarantee an agreement will be reached.
Vevo, which officially launched in December 2009, offers music videos from Universal Music Group, Sony Music Entertainment, and EMI — three of the industry’s major record labels.