Yahoo’s bid to acquire 75% of stake in France Telecom video site Dailymotion reportedly blocked by French Industry Minister Arnaud Montebourg.
According to media reports, Yahoo has withdrawn from the bid to acquire a majority stake in the France based online video site for $225m after the French minister raised objections to the deal.
Arnaud Montebourg was quoted by Bloomberg as saying to France Télécom’s chief financial officer Gervais Pellissier that he did not want 75% of the French company to be acquired by an American Web giant.
"I won’t let you sell one of France’s best startups," Montebourg told Pellissier.
According to French Industry Minister Arnaud Montebourg, Yahoo and France Telecom, owner of the Orange brand, were not able to reach an accord.
"At this stage, Yahoo and Orange aren’t able to reach an agreement that satisfies all parties," the government said.
Montebourg’s office said in a statement: "The minister has expressed his desire that a partnership between Yahoo and Orange should be built on an equal base, mutually beneficial to both companies."
Montebourg’s chief of staff Boris Vallaud was quoted by the media as saying that government isn’t the one that closed the door" to a Dailymotion-Yahoo deal".
Vallaud continued that the minister "doesn’t oppose a Yahoo-Dailymotion deal, as long as it is a win-win partnership" at "50-50."
DailyMotion has more than 110 million users per month, which make it the 12th largest online video site in the world, while it has struggled to take on firms including Google’s YouTube.
Yahoo has been attempting to expand its video presence and started talks with France Télécom on a deal under which it would have acquired control of DailyMotion.
