Yahoo’s Bid For Dailymotion Draws Objection From French Government

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Yahoo’s bid to control up to 75% stake of Dailymotion has ended abruptly.  CEO Marissa Mayer had been aggressively looking to grow its video programming to emulate Google’s success in video content with Youtube.  The search company planned to invest in Dailymotion for a price of around $200 million.

On paper, the merger made sense for both sides.  Yahoo would continue to build on its ambition to disseminate video content, and it would allow Dailymotion to grow internationally, funneling traffic directly from a top five website in the world.

Middle of last week, Le Monde first reported that the French government may object the sale to the Yahoo.  The popular video portal service is 100% owned by the telecom giant Orange, but 27% stake of Orange is control by the French government.  With its significant controlling interest, the French government has reportedly expressed its view that Yahoo may not be the best partner for one of the most successful tech companies in the country.   A Techcrunch source revealed that the French government simply does not want an American company taking over the country’s pride and joy.

Do you think this is a good move for Dailymotion?