French incumbent Orange is reported to be in talks to sell a 49% stake in its video-streaming website Dailymotion to Hong Kong telco PCCW.
Orange plans to sign an exclusivity agreement with PCCW in the coming days, according to a Wall Street Journal…
French incumbent Orange is reported to be in talks to sell a 49% stake in its video-streaming website Dailymotion to Hong Kong telco PCCW.
Orange plans to sign an exclusivity agreement with PCCW in the coming days, according to a Wall Street Journal report citing people familiar with the matter.
PCCW has made a preliminary offer which gives Dailymotion an enterprise value of US$250m, the report said.
When asked for comment, Orange said: “Orange has already said on numerous occasions that it is looking for strategic partners to support and accelerate the development of Dailymotion. Discussions are ongoing with various possible partners but the group is not in exclusive negotiations with any of them. Orange does not have any further comment.”
PCCW did not immediately respond to a request for comment.
In November 2014 Stephane Richard, Orange’s CEO, met with Richard Li, PCCW’s chairman, to discuss a potential investment in Dailymotion, according to reports at the time.
Orange owns 100% of the French website and has been seeking a minority partner in an attempt to challenge Google’s YouTube internationally, particularly in the US.
In 2013 the French government, which owns just over 27% of Orange, blocked the sale of a 75% stake in Dailymotion to US internet giant Yahoo.
However, after a government reshuffle last year, Richard may have greater leeway to bring in a foreign investor. He was also reported to meet Microsoft CEO Satya Nadella, but the US software giant was said to be lukewarm towards the asset.
PCCW is seen as good fit for Dailymotion as the Hong Kong group not only has telecoms assets, via HKT, but also broadband internet and pay-TV operations.
Orange originally bought a 49% stake in Dailymotion in 2011 for €62m before buying the remaining shares in 2013 for €61m.
