Freston joins Veoh investors


NEW YORK -- Former Viacom president and CEO Tom Freston has joined a growing list of investors in Internet TV service Veoh Networks, the company said Wednesday.

Freston, who left Viacom a year ago, took part in the company's Series C funding, which closed last month, via his Firefly3 LLC firm.

In all, Veoh received $25 million in its third round of funding with Goldman Sachs as the lead investor. Expedia Inc. director and Viacom advisor Jonathan Dolgen, chairman and CEO of Viacom Entertainment Group from 1994 to 2004, also participated in this latest financing.

This group joins Series B Veoh investors Michael Eisner's Tornante Company, Time Warner Inc. and Spark Capital, who raised $12.5 million for the company ending in April 2006. Shelter Capital Partners is another major investor in the service, which launched in beta in February.

Last month, Veoh, which hosts content from Paramount Pictures, Lionsgate, PBS and National Lampoon, said that it had 18 million unique users, up from 4.4 million in February.

In July, Veoh named former Yahoo executive Steve Mitgang as its CEO replacing founder Dmitry Shapiro, who stayed on at the company as chief innovation officer.

Last week, Universal Music Group sued Veoh alleging copyright infringement. Universal had threatened a suit against Veoh in August which caused the Web TV service to preemptively sue the record label.