Vivendi To Acquire 80% Stake In Video Portal Dailymotion From Orange
April 7, 2015 at 11:47 AM (PT)
VIVENDI is negotiating with ORANGE to acquire an 80% stake in DAILYMOTION for 217 million euros ($235.2 million). DAILYMOTION, a leading aggregator and distributor of videos has been valued at 265 million euros ($287 million).
DAILYMOTION is the second largest aggregation and distribution platform in the world, with over 2.5 billion videos seen per month. The company registered sales of 64 million euros ($69 million) in 2014, a figure that has increased by 30% every year since 2012. It employs 222 people around the world, based mainly in FRANCE and the U.S.
ORANGE, which will retain the other 20% of the company, has owned and developed DAILYMOTION since acquiring 49% of the company in 2011 and the rest in JANUARY 2013, For some time, they have expressed a desire to find a strategic, content-focused partner for DAILYMOTION capable of giving it the means to accelerate its growth and to turn it into one of the world’s largest content distribution platforms.
ORANGE will use the proceeds of this transaction to finance and reinforce its efforts in the digital ecosystem.
VIVENDI is looking to create a global group and FRENCH champion in the media and content industries. It enables the companyi to derive significant value from its content and to hold a controlling stake in a global distribution platform. The numerous opportunities for collaboration between DAILYMOTION and assets such as UNIVERSAL MUSIC GROUP and GROUPE CANAL+ "can be deployed rapidly in a way that will accelerate and reinforce VIVENDIs worldwide presence."
“The acquisition of 80% of DAIILYMOTION’s capital is an excellent opportunity that will provide the group with added reach in the diffusion of high-quality musical and audiovisual content across the world," VIVENDI Supervisory Board Chairman VINCENT BOLLORE said. "This is a first step in our ambition to create a large, global group that is focused on media and content. In addition, this operation illustrates our capacity to develop international strategic partnerships, in particular with ORANGE.”