Orange Urged to Seek European Partner for Dailymotion
The French government’s comments made in light of a possible deal with a Chinese investor
The warning issued by the office of French Economy Minister Emmanuel Macron comes weeks after the management of Orange, according to people familiar with the matter, told its board it intended to enter into exclusive talks with Hong Kong-based PCCW Ltd. over a deal to sell a 49% interest in Dailymotion.
“There can’t be exclusive talks,” Mr. Macron’s spokeswoman Barbara Frugier said. “Orange must look at all options and take into consideration what’s at stake for Europe’s digital sovereignty.”
Orange said Wednesday it continued to talk with potential investors in a quest to find a partner for Dailymotion.
“We haven’t signed any exclusivity deal, all options are open,” said a spokesman.
Dailymotion is widely seen as an example of a successful French startup. The company, founded in 2005, has managed to attract funding and expand globally, but Orange has argued for years that to catch up with Google Inc.’s YouTube, it needs to find partners.
Wednesday’s move by Mr. Macron’s office is the second time the French government has directly stepped into Orange’s plans for Dailymotion.
In 2013, then-Industry Minister Arnaud Montebourg prevented Orange from selling a majority stake in the site to U.S. Web giant Yahoo Inc. After the deal fell apart, Mr. Montebourg said the U.S. tech firm might have “devoured” a French jewel.
After Mr. Montebourg left the cabinet last year, the French government signaled it was more open to the idea of a foreigner joining with Orange in Dailymotion. France’s deputy minister for digital affairs, Axelle Lemaire, has said a new “Dailymotion affair” should be avoided by all means.
Mr. Macron’s spokeswoman said the French government wasn’t intent on banning a deal with PCCW but wished to remind Orange it should take into account efforts to create a stronger digital economy in Europe to counter the dominance of U.S. web giants.
“There is no veto,” Ms. Frugier said. “This doesn’t mean that the Chinese offer is ruled out.”