Veoh or step Joost down in the footsteps of large video site fate bumpy

"Sohu It News" Beijing time July 6 news, according to foreign media reports, recently a number of sources revealed that well-known video site Veoh is looking for buyers. This means that Veoh is likely to follow Joost's footsteps and become the next big video site to fall.

The investors behind Veoh include the Disney and Goldman Sachs groups. If the news is true, then veoh investors will face losses. The source said that Veoh chief executive Dmitry Shapiro wanted to sell the company at a price of 70 million dollars, which amounted to the investor's total investment in Veoh since 2005.

Veoh's problem is similar to most other video sites: a lack of adequate audiences, a lack of adequate advertising revenue, and high costs. Veoh currently has 25 million users, far less than YouTube. Sources say Veoh is currently losing about 6 million dollars a year. Although revenues are rising and executives are expected to make ends meet this year, the site still lacks enough strength to remain independent.

Veoh currently has a legal dispute with Universal Music Group, which believes Veoh infringes on his copyright. The two-year lawsuit has resulted in veoh spending millions of of dollars in attorneys ' fees, while supporters such as Time Warner have not given veoh enough help in the process.

According to past experience, large web portals such as Yahoo are likely to buy Veoh, and Time Warner Cable and other operators are potential acquirers. However, Veoh will also face similar difficulties, given that Joost had previously sought out the acquirer but failed in the end.