Vivendi Buys 80% Share of Video Site Dailymotion From Orange
Orange and Vivendi have finalized the sale of the majority of video sharing site Dailymotion. Media giant Vivendi, which owns Canal+ Group and Universal Music Group, acquired an 80 percent share of Dailymotion for €217million ($241 million U.S.) with Orange retaining the remaining 20 percent. That values the company at €265 million.
This concludes Orange's long search to find a partner for Dailymotion. Orange acquired 49 percent of the company in April, 2011, and the remainder in January 2013. As Streaming Media Europe reported a month later, Orange didn't intend to stay the sole owner for long. However, a 2013 plan to sell a 75 percent stake to Yahoo for €227 million ($300 million U.S.) was stopped by the French government, as was a plan this year to sell to PCCW, a telecom based in Hong Kong.
Vivendi sees the acquisition as a way to gain value from its existing properties and control a global distribution platform, a press announcement said when the deal was first announced in April. The deal gives Vivendi added reach, noted Vincent Bolloré, chairman of Vivendi’s Supervisory Board, adding that this is Vivendi's first step in creating a global media and content group.
Dailymotion is the internet's second biggest video sharing site, serving over 350 million views each month. It follows YouTube, which serves over 15 billion views monthly.
The YouTube competitor will relaunch with a daily curated playlist of premium content, but will it be able to clean up its image and attract major partners?
Streamroot says its P2P tech cuts CDN use by 90 percent while improving performance. But can it deliver for one of the world's biggest video sites?
Some of the web's biggest sites escape without paying their share, French politicians believe. The YouTube tax clears its first hurdle.
Over a year in the making, the new player offers Flash and HTML5 feature parity, and scores with accessibility offerings.
While Orange is now the sole owner of Dailymotion, it doesn't intend to stay that way for long and is looking to the U.S.