According to Wall Street Journal, Yahoo is currently in talks with Dailymotion to purchase a majority stake in the video social network. The move would be Yahoo’s attempt to expand its influence in the web video arena.
Dailymotion is currently based in France and the company has been trying to expand its influence to the US audience. A deal with Yahoo would be perfect to do precisely that. In return, Yahoo would be able to significantly bolsters its presence in the realm of online video arena.
According to WSJ, Yahoo is currently in talks with Dailymotion and if all goes well, Yahoo may acquire a 75% stake in the company. Although Dailymotion enjoys a significant amount of web traffic, the site is still leagues away from its chief contender, YouTube, which continues to be the undisputed champion of the web video arena.
In the past, Dailymotion CEO, Cedric Tournay, has expressed his desires to partner with a US-based company. The current round of talks with Yahoo may be a part of that strategy. The deal is expected to rake in $300 million and will be very significant in that it will be the first acquisition of Yahoo ever since its current CEO, Marissa Mayer, joined the company.
Yahoo currently enjoys a huge portion of the web traffic and a partnership with Dailymotion will help the company bolster the traffic further. Although for now, any possibilities of the partnership are mere speculation, it would make perfect sense for the two companies to join hands.
Source: WSJ
Courtesy: TNW
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