By Sahil Patel
For Dailymotion, which has been on the block for a few years now, Vivendi is offering 250 million euros ($272 million) in exchange for a majority stake, according to multiple reports. The company wants to build Dailymotion globally, potentially in collaboration with other video companies it has some control over, including the music-video streaming site Vevo and the German film/TV streaming service Watchever, according to The Wall Street Journal.
A multi-national media giant, Vivendi also controls the French pay-TV group Canal Plus and Universal Music Group (which partially owns Vevo).
Vivendi’s offer comes shortly after the Hong Kong-based telecommunications company PCCW pulled its bid for Dailymotion after meeting resistance from the French government. Once reports surfaced that PCCW was entering into exclusive talks with Orange over a Dailymotion sale, the French government urged the telecommunications company to reconsider, wanting to keep the site in European hands.
“An environment where policies appear favor a French or European solution is discouraging for international business participation,” PCCW said in a statement released to the press. “We will therefore withdraw our discussions with Dailymotion and its current owners.”
If this sounds familiar, it’s not the first time a potential Dailymotion sale has been scuttled due to the involvement of the French government, which owns a 25% stake in the company. In 2013, Yahoo was close to acquiring a controlling stake in Dailymotion, only for the deal to be blocked by the government due to concerns that a French startup would be absorbed by a US-based media giant.
News of Vivendi’s offer was first reported by Le Monde. The French newspaper also said that the offer will be discussed by Orange’s board at a meeting on Tuesday.