This past week Orange purchased the remaining 49% of Dailymotion, after having purchased 51% of the video site nearly two years ago, with a clause in its acquisition to allow it to buy the remaining 49% later. After trying to find a US partner to take the remaining 49% of the company for the past 2 years, it seems Orange has bit the bullet and bought the remaining stake in the video site, at a loss. Originally, Orange’s deal allowed it to purchase the remaining stake for up to 72 million euros, meaning that Dailymotion’s valuation would be capped at 142 million. According to JDN and one of Hugo Sedouramane’s infamous sources, Orange is not paying the full 72 million euros, and the valuation will be “closer to 100 million euros.” This means Orange is buying the remaining 49% at a loss compared to its 51% acquisition two years ago, as Whiteboard points out.
Dailymotion has had a rough go from day one, and while they’ve tried to differentiate themselves by launching premium services, and most recently a subscription model for Kids shows. At the time Orange’s purchasing in 2011, they said they were looking to make Dailymotion profitable, “not just a site that attracts user.” While their market cap is well under that of YouTube’s, they must’ve known that going into the deal, and thus, they must have a different endgame in mind. One thing’s for sure: Orange has been a tech powerohuse in the past 12 months – launching new subsidiaries in new markets, investing in startups, stealing startup ideas / “creating their own” – they certainly are on a mission. For what, exactly, remains to be seen.
Orange had said previously that it was looking for an American ‘partner’ to share its stake in Dailymotion, which it had been looking for since 2011; however, it seems time ran out on Orange’s option to buy up the rest of Dailymotion, and it didn’t want to see the valuation drop even further. Orange publicly stated that they are still looking for a buyer, and plan to close the deal in the coming months.
Leave a Reply
You must be logged in to post a comment.