REPORT: The French Government Prevented Yahoo! From Acquiring Majority Stake In Dailymotion

Posted Apr 30, 2013

Last month, we wrote about how Yahoo! was planning to acquire a majority stake in video storage and sharing website Dailymotion.  This deal is no longer happening, but it was not because of agreement issues between the two companies.  It actually has to do with the French government.

The French publication Le Monde quoted a government official as saying ?Dailymotion is one of the rare content companies from France that succeeded in on the web in recent a gem and, more over, doesn?t lose money. It would be a real shame to let it go.?

Is this shocking?  Not really because there is a lot of red tape associated with a foreign company acquiring a majority stake in a government-owned property.  The French government owns part of Orange-France Télécom.  And Orange is a majority owner in Dailymotion.  Even the United States government did a lot of vetting before Chinese company Wanxiang acquired A123 Systems.  The U.S. government had a large stake in A123.

The unfortunate part of the situation is that there aren’t very many potential partners to help Dailymotion achieve their international goals so Orange has to start all over again to seek buyers.