French media group Vivendi has entered exclusive talks to acquire 80 per cent of video-sharing website Dailymotion from telecommunications company Orange for €217m ($230m).
Vivendi’s offer has 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 Hong Kong telco PCCW curtailed talks over a possible deal.
“Orange and Vivendi will now enter into a period of exclusive negotiations in order to finalise the terms of this operation,” the companies said jointly.
Orange said that the deal would give Dailymotion "the means to accelerate its growth and to turn it into one of the world's largest content distribution platforms.” Vivendi chairman Vincent Bollore added that the proposed agreement represented “a first step in our ambition to create a large, global group that is focused on media and content.”