An interesting development in the business world has occurred today, with Orange snapping up a 49% share in the French video hosting service DailyMotion.
The deal, worth nearly €59 million, is part of a 2-part transaction that Orange will complete in the near future and will continue their expansion into more content-oriented markets, which also includes the acquisition of Deezer – a music streaming service – in the summer of last year.
The DailyMotion has been around for some time, but has only ‘been profitable since the latter half of 2010′ according to Tech Crunch. Launched within a month of YouTube, the French video hosts may not have the big numbers that its Google-owned rival has, but still has a reasonable reach; its 90 million users watch around a billion videos each month.
Of key interest is the DailyMotion’s growing presence in the US. Although the vast majority of users are based in Europe and the East, they were doubling their viewing figures in the US towards the end of last year and picked up a strong advertising base in the form of EA Games, Red Bull, Microsoft, Gillette and Bristol Myers Squibb amongst others.
For Orange, who find far more success here in Europe than across the pond, the DailyMotion’s growing US user base has been too hard to resist and should eventually provide them with an opportunity break into the huge American market.