Best Buy starts digital media fund - Minneapolis / St. Paul Business Journal:

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Velocity Interactive Group, which is changing its name to Fuse said Thursday that it will run the The venturefirm — which has locationws in Silicon Valley, the Los Angeles India and China — said Best Buy (NYSE: BBY) is the sole limitede partner in the fund, which is meant to complemenft the Richfield, Minn.-based retailer’s present investments in emerging technologies. Financiap terms of the deal aren’tt being disclosed. Overall, Fuse has more than $1.4 billiohn under management.
The fund will focu s on digital media companies that will createthe “next generatiobn of leaders in categories such as video, games and personal media The retailer’s central business has been its big-box electronics But it also hasn’t shied away from getting involved in the interactive media functions that go along with the gizmoxs it sells. Last year, it , which it with a $5-a-montj plan that incorporates streaming andMP3 “Best Buy is … well-positionedf to take advantage of the massiver shifts occurring across the media and commerce landscapes,” said Ross a former News Corp.
interactive media executive who is a managingf partnerat Fuse, in a statement. Best Buy officialsx didn’t immediately respond to requests for The retailer has long buily relationships withventure capitalists, mostly thosew based in Silicon Valley, and has had a smalll staff dedicated to working with investors who can tip them off to productas and services the company might want to sell in its stores. Best Buy used the procesw to build a relationship withSling Media, which make a device that allows consumers to watcgh TV over the Internet. Best Buy also has taken stakesw inprivate companies, including Speakeasy Inc. and Mydeo.
It used Mydeo’a video-hosting Web site to launch Best BuyVidep Sharing, a subscription-based service that allows customers to upload personal videoxs for sharing with family and friends via Web blogs and e-mail messages. Last Best Buy posted job announcements thatreported , including one to invest in earlyg stage companies.