Microsoft Corporation (MSFT) in talks to invest in Dailymotion
Microsoft Corporation (NASDAQ:MSFT) is reportedly in talks to invest in Dailymotion, one of YouTube’s largest rivals. Dailymotion is fully owned by Orange, a French telecommunications company. Yahoo! attempted to buyout Dailymotion, but the French government blocked the deal.
Orange CEO Stéphane Richard talked with BFM Business at Mobile World Congress about Dailymotion. “We are still talking with a major American partner in particular,” stated Richard. “With Microsoft indeed. It doesn’t mean that we will reach an agreement but I’m confident that we will.”
Yahoo! was going to acquire 75% of Dailymotion for $200 million in April 2013. The French government blocked that deal. The French government owns 27% of Orange. The deal was reportedly blocked by French Minister of Industrial Renewal Arnaud Montebourg specifically.
Orange reportedly had to spend $40 million (€30 million) for the video website to bounce back after the acquisition talks. Orange is now interested in Dailymotion to find a partner to help with international growth and to reduce their stake. Dailymotion is also looking for content partners.