Yahoo Inc has discontinued an effort to acquire a majority share in online video website Dailymotion due to arguments by the French govt, according to press reviews, scrapping what would have been the greatest cope in the 10-month period of Yahoo CEO Marissa Mayer.
Dailymotion is among the most popular online destinations for video, although it lags far behind Google Inc’s YouTube, the prominent video web site. News that the cope was running into trouble was first revealed by French press last week.
Yahoo had been in speaks to buy a 75 % share in Dailymotion, owned by telecommunication company France-Telecom Orange, in a deal that would have respected it video website at $300 million. But French govt authorities brought up issues that the country would come unglued over one of its greatest Internet industry achievements in such a cope, according to a person acquainted with the issue.
French govt authorities and France Telecom executives desired to organize a deal in which Yahoo would take a 50 % share instead, but Yahoo balked, the Wall Street Journal reported on Tuesday.
Yahoo and Dailymotion declined to comment on the issue.
France Telecom-Orange obtained Dailymotion for $170 million through a two-phase deal, with the most recent deal ending in Jan. Dailymotion’s article and professional management operate individually of France Telecom-Orange. Online video, which orders higher ad rates than traditional Web content, is progressively important to Yahoo as it looks to reverse a multiyear decrease in income and guest traffic.
Mayer, who took the reins of the struggling Internet pioneer in summer, has so far targeted her purchase initiatives on sweeping up small, mobile start-up companies.
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