Media and content firm Vivendi is set to buy an 80% stake in Dailymotion for ($235m) 217 million euros, pegging Dailymotion to be worth ($287) 265 million euros, in a move that will help Orange to create a global group and French champion in the media and content industries however giving Vivendi power over video content.
Dailymotion, a YouTube for France will be joined into Vivendi’s assets such as Universal Music Group and Groupe Canal+ which the firm also aims to launch globally.
In a statement, Stéphane Richard, Chairman and CEO of Orange, said: “Our partnership with Vivendi will enable Dailymotion, in which we remain a 20% shareholder, to accelerate its growth internationally and to enhance its content offer. The proceeds from this transaction will enable Orange to reinforce its efforts in the digital ecosystem. Finally, this agreement also illustrates our willingness to reinforce our partnership with Vivendi.”Orange will retain a 20% stake in the company.Acquired by Orange in 2011, Dailymotion says it has increased its audience by 2.5 and grown into one of Europe’s biggest success stories in the digital domain. Dailymotion is the second largest aggregation and distribution platform in the world, with over 2.5 billion videos seen per month. The company registered sales of 64 million euros in 2014, a figure that has increased by 30% every year since 2012. It employs 222 people in the world, based mainly in France and the United States of America.
Vincent Bolloré, Chairman of Vivendi’s Supervisory Board, also commented on the operation: “The acquisition of 80% of Dailymotion’s capital is an excellent opportunity that will provide the group with added reach in the diffusion of high-quality musical and audiovisual content across the world. We are particularly enthusiastic at the idea of supporting Dailymotion in this important new phase of their development as the company evolves into a reference global platform.”
Vivendi sees the deal as its first step in our ambition to create a large, global group that is focused on media and content. In addition, this operation illustrates our capacity to develop international strategic partnerships, in particular with Orange.”
Orange has held 100% of Dailymotion since January 2013, following its initial acquisition of 49% of the company’s capital in April 2011. The telco will retain 20% of Dailymotion.
Orange is present in 29 countries with a total customer base of 244 million customers worldwide. The firm is set to expand its African operations and this sale would be the much-needed cash cow to do so.