Veoh to raise $40 million?

Video-sharing site Veoh, which is backed by former Disney CEO Michael Eisner, is rumored to be looking for $40 million in new investments, according to Silicon Alley Insider. The company has hired Bear Stearns to raise the funds, which would give Veoh a valuation of $150 million, according to the report.

If it raises the cash, Veoh would have a war chest of more than $80 million to compete with video rivals YouTube and Joost, among others. Its investors include Goldman Sachs, Spark Capital, and Shelter Capital Partners. Other backers include Tom Freston and Jonathan Dolgen, former executives at Viacom, a content partner of Veoh.

A Veoh representative declined to comment.

[totocalimero]

Why?

Why do we need yet another online video web site? What's the point? We already have YouTube and others, what are these guys doing that is worth so much money? How do they expect to monetize their "service"?

Seriously, video sharing web sites are like social networking web sites. What's the point of creating yet another copy cat? There is only so much interesting content out there and so much time for people to watch video on the web.

They just look like a bunch of "me toos" who are simply trying to surf the wave without creating anything new.