![]() It may have even been the confidence of that sale going through that encourages France Telecom to step in when it did. ![]() In fact, from what we understand it was even on the table before France Telecom bought its majority stake in January 2013. TechCrunch understands that Yahoo’s interest in Dailymotion had stretched back from before news first broke of it in March. The government sent a bad signal to French investors. Who in their right mind would go there now? From a signalling standpoint it’s highly concerning.”Īs a result, venture capital investments could flatten in the coming months. “France Telecom and Dailymotion may now go back to other interested parties to instead take a minority stake, but the issue with that is if you’re a minority investor and you’ve seen the French government do this, why would you invest? It’s a terrible signal to the marketplace. “The strategic intent was always to find an investor to help them internationally,” said the source. The other is the question of what this might mean for investing in French companies in the future. It’s not clear which company would be a good fit to acquire Dailymotion. The alternative to that is to seek out another buyer, probably in France, who would be interested in buying most of France Telecom’s stake, since the carrier had already made it clear that it intended to divest itself of most of that stake when it took it on earlier this year. Les Echos estimates that the sum will need to be in the region of €50 million ($65 million). ![]() For one, Dailymotion will likely now have to raise money from somewhere - France Telecom or the French government, or perhaps from a national business - in order to invest in its platform. The end to the Yahoo deal will have a couple of ramifications. In the meantime, Dailymotion won’t be able to keep up with the competition - and especially YouTube - if Orange is not ready to invest more capital in Dailymotion. Stéphane Richard, who wants to stay at the head of Orange for another term, didn’t want to go through with the deal. It would have been in the best interests of the company. It’s a shame because all of the growth at Dailymotion is international. “Hence, Montebourg didn’t want to let it go to the Americans. “Dailymotion is considered a marquee company in France’s technology industry,” the source said. Our source said that Arnaud Montebourg, the French Minister of Industrial Renewal, effectively told Orange that it could not go through with the deal. ![]() We have confirmed with someone close to the deal that the latter is indeed the case. But a report in the French newspaper Le Monde last week noted that Orange had suspended the deal because of opposition from the French state, which owns 27% of the telecom company. At first it looked like the issues were because of internal disagreements at Yahoo, according to Business Insider. Rumors of problems with the deal have been swirling around for weeks. company to take a controlling stake in a French operation, TechCrunch has confirmed with a source close to the situation. Yahoo’s bid to take a $200 million majority stake in the video site - known as the ‘YouTube of France’ - by buying a stake from carrier France Telecom/Orange has been killed by the French government, which decided that it didn’t want a U.S. It looks like lightning has struck on the towers of Dailymotion. ![]()
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