Orange Courts Yahoo! With Dailymotion Stake
France Télécom - Orange is reportedly considering selling up to 75% of its popular online video platform, Dailymotion , to US-based online search company Yahoo! . As part of an initiative to expose Dailymotion to a wider, global audience, France Télécom said it would seek one or more industry partners to help realise its ambitions. Meanwhile, Yahoo!'s new CEO, Marissa Mayer, has promoted expansion into the European and Asian online video markets as part of its turnaround strategy. With the French government turning increasing ly hostile towards Google , the decision to work with the smaller online search provider is not unexpected.
Terms of the putative deal are not known, but the Wall Street Journal values the business in its present form at US$300mn. With its global content delivery network (CDN), Yahoo! clearly possesses the scale and reach that France Télécom - with its primary focus being on Europe and Africa - does not and, in any case, is keen to build an online video business that will compete with Google's YouTube . The relatively low valuation of the company is linked to the fact that it has a limited geographic reach and serves 116mn unique users, making it the 12 th largest platform in the world according to January 2013 data from ComScore .
Yahoo! is generally considered to have lost its way in recent years and has struggled to stem the tide of online search requests flowing to Google and to local/regional players such as China's Baidu and Russia's Yandex . The company relies heavily on advertising to fund its expansion but, as users desert Yahoo!, the company has experienced cooling enthusiasm from advertisers. Dailymotion's popularity in France and Turkey and the pote ntial for the platform to do well in major European broadband markets such as the UK and Germany will be appealing to Yahoo!, which has identified Western Europe as a key area for expansion.
|TV In Your Pocket|
|Annual Consumer Internet Video Traffic By Region (PB/month)|