By Ruth Bender
PARIS-- Orange SA Tuesday agreed to enter into exclusive talks
to sell Vivendi SA a majority stake in Dailymotion, a deal that
looks set to end the telecommunications operator's protracted and
politically sensitive hunt for a partner to develop the French
video streaming site.
In a joint statement, the companies said Vivendi has offered to
buy 80% in Dailymotion for EUR217 million. Orange will keep the
remaining 20% stake if the companies reach a deal at the end of the
exclusive talks, the groups said.
The deal with Vivendi would assure that Dailymotion remains in
the control of French companies after the French government twice
prevented Orange from selling a stake in the streaming site to a
foreign company.
Orange has been looking for a partner for Dailymotion for more
than two years. Many bidders have come and gone since the French
government in 2013 scuttled a deal for Orange to sell a majority
stake in the site to U.S. Internet heavyweight Yahoo Inc.
Last month, Orange came close to completing a deal with Hong
Kong-based telecom company PCCW Ltd., but the company Monday pulled
out of talks after France's economy minister urged Orange to look
for European partners, opening the door for Vivendi to come forward
with an offer.
Vivendi has had its eye on Dailymotion for years but in the past
failed to convince Orange to give up control of the company,
according to people familiar with the matter.
Write to Ruth Bender at Ruth.Bender@wsj.com
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