The Wall Street Journal are reporting that Yahoo are allegedly in talks to acquire a 75% stake in video site Dailymotion. If true, this move represents one of the first major public acquisitions by CEO of Yahoo, Marissa Mayer and could prove a huge boost to their involvement in online video. The WSJ speculates that Dailymotion, currently100% owned by Telecoms giant Orange, could be worth up to $300 million.
With average monthly visitors numbering around 109 Million, it’s the world’s second most popular video portal behind YouTube and a significant stake in the company will certainly strengthen Yahoo’s video presence across Europe and Asia, markets that they are keen to expand in.
Yahoo’s interest in Dailymotion isn’t entirely without foundation. The video site signed a syndication deal with the search engine back in July 2012, an agreement that also offered Yahoo a percentage of the advertising revenue generated from those videos. Yahoo disabled the ability to upload a video to their Yahoo! Video site back in December 2010 . They confirmed that that user-generated content would be removed from on March 15, 2011 so it’s going to be interesting to see how the search engine deals with that type of content (including the NSFW stuff) that comes as part of any potential Dailymotion deal.
Mayer has previously highlighted video as vital, particularly for music and has stated that:
Video is going to be very important to our strategy, and video and audio are very much the same. I do think there is important parts around video that includes music, but I don’t think we’re going to pursue music ourselves. As we look for the innovative and differentiable angle, I don’t think that’s the area we see a lot of opportunity.