Vivendi and Orange see their co-ownership of Dailymotion as a step towards a developing “partnership”, said their respective heads.
Jointly announcing Vivendi’s exclusive talks to buy an 80% stake in the French video website for €217m, Orange…
Vivendi and Orange see their co-ownership of Dailymotion as a step towards a developing “partnership”, said their respective heads.
Jointly announcing Vivendi’s exclusive talks to buy an 80% stake in the French video website for €217m, Orange CEO Stephane Richard and Vivendi chairman Vincent Bollore each highlighted a willingness to work together.
Such a partnership is now possible, explained an Orange spokesperson, because Vivendi is no longer the owner of French mobile operator SFR. As such, the two companies will be able to work jointly on telecoms/media convergence – something Vivendi – with its exit from telecoms – has elected not to do on its own. Orange, for its part, will be able to partner with a media specialist rather than relying on M&A.
Vivendi described the deal as enabling it “to create a global group and French champion in the media and content industries” and to “derive significant value from its content and to hold a controlling stake in a global distribution platform”, especially useful for its Universal Music and Canal+ businesses.
Vivendi chairman Vincent Bollore said the deal “illustrates our capacity to develop international strategic partnerships, in particular with Orange”.
Richard said Orange would spend the proceeds on reinforcing its efforts “in the digital ecosystem”, describing the agreement as reinforcing “our partnership with Vivendi”.
The Orange spokesperson explained that the proceeds would be invested in start-ups, either via Orange Digital Ventures or Iris Capital, Orange’s JV with advertising giant Publicis.
Vivendi’s offer gives Dailymotion a €265m enterprise value. Orange will retain a 20% stake, and the right to veto major topics including jobs.
German media group ProSiebenSat.1 also placed a bid, but the “large majority” of Orange’s board backed Vivendi’s offer, Richard reportedly told a French parliamentary committee.
