A Hong Kong investor who was part of telecommunication group PCCW’s bid to acquire a stake in video-sharing website Dailymotion has hit out at the French government’s “cynicism” in ending the deal.
Charles Brown, head of investment company Lake House Group and a partner in the bid with PCCW, said the move by Economy Minister Emmanuel Macron had led them to avoid France as an investment destination.
“One would have thought Emmanuel Macron would resist political pressure,” Brown told the Financial Times newspaper. “It’s done, we’re not bitter, but are we and PCCW getting near France? I doubt it. Not any time soon.” PCCW declined to comment.
French media group Vivendi last month entered into exclusive talks to acquire 80 per cent of Dailymotion from telecommunications company Orange for €217m ($230m).
Vivendi’s offer secured the support of the “large majority” of Orange's board ahead of a rival bid from German media company ProSiebenSat.1, Orange chief executive Stephane Richard told a parliamentary economic affairs committee.
Under the proposed deal, Orange would retain 20 per cent of Dailymotion and a right of veto on certain key issues. The exclusive talks were revealed after PCCW curtailed talks over a possible deal.
The French state has a 24.9-per-cent stake in Dailymotion. In 2013, the French government blocked a bid by US internet company Yahoo! to acquire the platform.
Brown said the Dailymotion process highlighted the insular nature of France’s business and political elite, and he rejected Macron’s claims of pragmatism. “The appropriate word should be ‘cynicism’,” he said. “I was fairly sceptical going into this but I didn’t expect this to get that crazy. The whole thing is very French. And we don’t have political clout.”
Vivendi chairman Vincent Bollore said last month that the proposed agreement represented “a first step in our ambition to create a large, global group that is focused on media and content.”