Orange has begun exclusive negotiations with Dailymotion, taking a 49% share in the ‘French YouTube’ at a cost of €58.8 million, which could ultimately lead to complete ownership.The IPTV operator says the purchase of the world’s second largest video site will give it the opportunity to develop a complete multiscreen video offer.
After 2013 Orange will be allowed to progressively increase its holding in the venture through to a full 100%, though additional business partners might also be brought on board.
By adding the video platform to its portfolio, Orange hopes to be able to increase its customers’ use of connected screens via the internet, through Wi-Fi and 3G.
Launched six years ago, 80% of its users are located outside of France, and Dailymotion hopes its new owners will help it to further expand internationally.
It is anticipated that the deal will close in the next few months.