Orange and Vivendi have entered exclusive negotiations for the acquisition by Vivendi of an 80% stake in Dailymotion, the two companies vofirmed.
Vivendit will pay EUR217 million for the stake, valuing the enterprise value at EUR265 million. Orange will retain a 20% stake in the company.
For Orange, this operation “meets the Group’s ambition to bring Dailymotion together with a strategic content-focused partner that is capable of giving it the means to accelerate its growth and to turn it into one of the world’s largest content distribution platforms. In parallel, Orange will use the proceeds of this transaction to finance and reinforce its efforts in the digital ecosystem.”
The acquisition enables Vivendi to derive value from its content and to hold a controlling stake in a global distribution platform. “The numerous opportunities for collaboration between Dailymotion and Vivendi assets such as Universal Music Group and Groupe Canal+ can be deployed rapidly in a way that will accelerate and reinforce Vivendi’s worldwide presence,” according to a press statement
“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,” commented Stéphane Richard, chairman and CEO of Orange.
“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 Vivendi’s Supervisory Board, also commented on the operation: “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.”
Orange holds 100% of Dailymotion since January 2013, following its initial acquisition of 49% of the company’s capital in April 2011.
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 EUR64 million in 2014, a figure that has increased by 30% every year since 2012. It employs 222 people in the world, based mainly in France and the United States of America.