Is YouTube Hungry for More?

Google’s (NASDAQ:GOOG) YouTube is primarily known as a video distributor, but the service is increasingly looking to increase its footprint and gain ownership of the content providers whose videos populate its site. After acquiring a $35 million stake in Machinima, a network aimed at gamers, YouTube is now looking into Vevo, a joint venture between content owners Universal Music and Sony (NYSE:SNE) and investor Abu Dhabi Media.

As AllThingD’s Peter Kafka reported on Wednesday, the deal has not yet been finalized, as Universal and Sony have yet to sign off on the agreement, but Google and YouTube have agreed to make an investment in the content partner.

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If terms are agreed upon, “it will allow the two sides to continue with a symbiotic — and at times contentious — relationship that has gone on for three years,” Kafka wrote. YouTube will be able to continue streaming music videos from big labels and Vevo will be able to show its clips on the world’s largest video distribution site. Vevo’s current contract with YouTube allows the distributor to host its videos in exchange for approximately one-third of the advertising revenue…