Confirmed: Orange acquires 49% of DailyMotion for €59 million, rest to follow

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Rumors have been flying around for the last week about a possible acquisition of DailyMotion, the French-born equivalent of YouTube. And the first half of the 2-part transaction has just been confirmed; Orange will acquire roughly 49% of the company for approximately €59 million (€58.8 million) with the rest to follow shortly.

Advent Venture Partners, an investor in DailyMotion since 2007, said that investors were actually not seeking to sell the company, which has apprently been profitable since the latter half of 2010. However, the company did seem to be burning cash prior to that point; over $68.5 million had been raised with some of Europe’s top tier VCs in 3 different rounds of funding.

DailyMotion was the longtime reigning video platform of choice in France (even after the Google-YouTube acquisition) and has 90 million users of which 80% are situated outside of France (namely in the US, India and Turkey). The acquisition is most likely going to allow Orange to further develop video on various mobile devices  and also integrating it with additional content sharing platforms.

DailyMotion’s story usually tends to evoke a lot of mixed reactions. Some feel it’s a success while others a failure. Interestingly enough, DailyMotion and YouTube were founded within weeks of each other in 2005. However, the San Bruno-based company was swallowed up by Google the following year for $1.65 billion while DailyMotion trodded along. Still, the platform managed to continue growing despite the threat of Google’s YouTube and is currently the 2nd ranked video platform worldwide.

For now, half the company has been acquired – we’ll keep you posted as Orange reveals info concerning the second stage of the transaction in the upcoming months.

  • Tweets that mention Confirmed: Orange acquires 49% of DailyMotion for €59 million, rest to follow --

    […] This post was mentioned on Twitter by TechCrunch Europe, JacopoGio, Steve Moss, David, Laurent VERMOTGAUCHY and others. Laurent VERMOTGAUCHY said: #news Confirmed: Orange acquires 49% of DailyMotion for €59 million, rest to follow […]

  • Lucas


  • Cyril

    Fred Destin. He obtains his first profit exit for one his deals. Félicitation Fred. When do you add this to all the others you are where? In the money or outside? Be honest…

    • Fred Destin

      Hi Cyril, you can run the math. First tranche at 120M of EV, the overall value in the 120-200M range, we own just under 20%.

  • Orange Acquires 49% Of DailyMotion For €59 Million, The Rest To Follow | JetLib News

    […] Read the rest of this entry » […]

  • Gootoor

    Overpaying ?

  • cast note

    Yet another French solution. I wonder what motivates a mobile operator to buy in a video platform. On the other hand, the French state is already half involved in DailyMotion, this might just be a hidden rescue.

    • Meemo

      especially considering how Christine Albanel, a former French Minister, is now working directly for Orange-France Telecom

    • Yuno

      Orange is not just a mobile operator, it’s also France Telecom, which is known to make video sites slower unless they pay for traffic via FT’s OpenTransit. I bet Dailymotion will be faster than the competition now, for Orange’s customers.

      An article that explains that:

  • Lmly81

  • Horatiu Mocian

    If 49% of the company was sold for €59 million, this means a valuation of €120 million, or $160 million. If they received funding of $68M, have the VCs got an acceptable return rate? It couldn’t be more than 2X, maybe closer to 1X. Or will the other 51% be bought at a higher price?

    • Fred Destin


      • Horatiu Mocian

        I agree for the Series A investors (Atlas – congrats, Partech), but is this true even for the funds from Series B and C (Advent, IDInvest, FSI)?

    • Anonymous

      Depending on the stage, different VCs came in at different valuations, so certainly the early stage investors got a better return. Even if an earlier stage VC (in this case Atlas – well done Fred!) followed through and invested pro-rata in subsequent rounds, dollar cost averaging probably means the early stage guys did well.

      This is all speculation and I’m not well versed in venture financing, so please correct if I am missing something.

    • HatchBrands

      depends on the liquidation preference.

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    […] let’s just get this straight, Dailymotion, a French-born competitor to YouTube, has been bought by Orange which will acquire about 49% of the company for €58.8 million or about 160 million […]

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    […] a frenzy these days! Today: MyPublisher, Inc. just bought Orange is buying Daily Motion. There were dozens more big ones since the year […]

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    […] buy DailyMotion Posted on January 25, 2011 by erichewett It is reported that Orange owned by the France Telecom has acquired 49% of the Dailymotion. I am just wondering […]

  • forex contest

    fantastic prices…wouw.. in EURO

  • Dailymotion shoots for video-powered apps, slowly opening up developer API

    […] month the telco acquired roughly 49% of the company for approximately €59 million with an option to purchase the rest of Dailymotion at a later day. […]

  • Anonymous

    too much !!!

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