France just put the guy who killed the Yahoo!-Dailymotion acquisition in charge of the Digital Economy

France just put the guy who killed the Yahoo!-Dailymotion acquisition in charge of the Digital Economy
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In France this week, President Hollande has announced a suite of changes to his staff of Ministers, in an attempt to improve his approval ratings and turn around the administration. Among those announcements came an announcement that Fleur Pellerin, the Junior Minister of the Economy and Startups, would have her post eliminated and rolled into the rolls of the Minister of Industrial Renewal, Arnaud Montebourg.

For those of you not familiar with Arnaud Montebourg, you may remember him from the Yahoo!-Dailymotion acquisition, where, as Minister and thus shareholder of Dailymotion parent company Orange, he refused to let Orange sell 75% of Dailymotion to Yahoo! because Dailymotion ‘had to remain French.’

This same man spoke of the ongoing conflict between Uber & Paris taxis on stage at LeWeb Paris last December, saying,

“When innovation destroy systems, we have to go slowly.  This is what we call balance, equilibrium, balance.  We never say the world is not changing.  Beware, when we destroy sector of the economy, you have to use caution…You can innovate without destroying.  We have to protect the Producers; the Consumers are not the Kings of the world”.

While the fate of Fleur Pellerin is still being decided – she may be appointed a role of “Secrétaire d’Etat,” maintaining similar functions but, essentially, a step down the government career ladder. Among her responsibilities is LaFrenchTech, a label launched earlier this year, in order to promote French Tech in France and abroad – questions about the fate of the initiative, which was seen as a huge step forward for the French Startup Scene,  are up in the air.

For now, it seems that LaFrenchTech, which has allocated a €200 Million to the promotion of LaFrenchTech, will stay intact – the ‘mission’ is at least to some extent independent of Pellerin’s cabinet, but it will ultimately need to find a home if it wishes to continue beyond its initial budget.

Montebourg will retain his responsibility of revigorating the country’s industrial sector, a title he’s had since Hollande was elected, and has so far seen Peugeot cut 8,000 jobs and which also won him a letter from a US CEO stating that he would only buy a Goodyear plant if Montebourg could loosen the hold that labor unions have over employment conditions. Let’s hope he doesn’t have the same level of success with his new responsibility as he’s had with his previous one.

5 Responses

  1. Avatar
    Tom Kelner

    the descision to stop Yahoo was the right one, itd the same reason why Youtube is blocked in China. The amount of data these platforms accumulate on the users is huge and they are the platforms of the future. Why would you let an American Company have this kind of influence?

    • Avatar
      Morgan Arokion

      That is totally right, why would France (as a shareholder of Orange) should let go one of its most iconic and successful tech companies ? The development of a strong European ecosystem for tech companies remains to be built up and supporting a major national player as Montebourg did was definitely a smart move to me.

    • Avatar
  2. Avatar
    jeremie

    Same here, I think it was a smart move not to sell Dailymotion. Plus, I think the offer was not that great. Keep in mind that Yahoo paid 1 Billion for Tumblr.

  3. Avatar
    E

    – If the government blocks, you make it difficult to convince VCs to finance startups
    – less capital means it’s a lot harder to start a company, and things move a lot slower
    – It also means that anyone looking to build something awesome, their incentives are somewhat removed. Thus the 60,000 french living in California: http://www.cnbc.com/id/101409926

    To his point, maybe this guy is right to say that the consumer is not king, as it looks like tech is killing every industry right now (think Amazon to bookstores etc.). Had the Dailymotion block been framed as a way of preventing a US company from accessing data and as a security measure, I might have been ok with it, but the minister in charge of innovation is not the right person to make that call….

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