Orange and the media and telecoms group, Vivendi, Tuesday announced that they are entering into an exclusive negotiation regarding Vivendi's acquisition of an 80% stake in Dailymotion for 217 million euros, with Orange retaining the rest of its stake in the company. Orange is expected to use the proceeds of this transaction to finance and reinforce its efforts in the digital ecosystem.
The acquisition will enable Vivendi to integrate Dailymotion's offerings with its current media portfolios, including its subsidiary Canal+ Group, the French leader in pay-TV, which is also operating in French-speaking Africa, Poland and Vietnam and its subsidiary Studiocanal, a leading European player in production, acquisition, distribution and international film and TV series sales. Both Dailymotion and Vivendi can also collaborate on Vivendi's media assets such as the Universal Music Group and Groupe Canal+, deploying new services rapidly in a way that will accelerate and reinforce Vivendi’s worldwide presence.
Stéphane Richard, Chairman and CEO, Orange
Orange has supported the development of Dailymotion since 2011 as the company has increased its audience by 2.5 and grown into one of Europe’s biggest success stories in the digital domain. Our partnership with Vivendi will enable Dailymotion, in which we remain a 20% shareholder, to accelerate its growth internationally and to enhance its content offer. The proceeds from this transaction will enable Orange to reinforce its efforts in the digital ecosystem. Finally, this agreement also illustrates our willingness to reinforce our partnership with Vivendi.
Vincent Bolloré, Chairman of Supervisory Board, Vivendi
The acquisition of 80% of Dailymotion’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. We are particularly enthusiastic at the idea of supporting Dailymotion in this important new phase of their development as the company evolves into a reference global platform. 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.