MUMBAI: Media Company Vivendi will hold 80 per cent stake in Dailymotion for €217 million, as per the agreement entered between telecom operator Orange and media company Vivendi. According to the deal, Orange will maintain a 20 per cent stake in the company which match up to an enterprise value of €265 million.

The acquisition for Vivendi will be an "important step forward in its effort to create a global group and French champion in the media and content industries." This will allow Vivendi to gain significant value from its content and to hold a controlling stake in a global distribution platform. The acquisition will make the flow of content between Dailymotion and Vivendi assets such as Universal Music Group and Groupe Canal+ hasten and strengthen Vivendi's worldwide presence.

Both companies, Orange and Vivendi, will enter into an agreement to finalise the terms of the operation. The statement issued by the companies stated that the agreement is also subject to the necessary information-consultation meetings with employee representative organisations.

Since 2013, Orange holds 100 per cent of Dailymotion which is the second largest aggregation and distribution platform in the world, with over 2.5 billion videos seen per month.

Commenting on this agreement, Stéphane Richard chairman and CEO of Orange said, "Orange has supported the development of Dailymotion since 2011 as the company has increased its audience by 2.5 and grown into one of Europe's biggest success stories in the digital domain. Our partnership with Vivendi will enable Dailymotion, in which we remain a 20 per cent shareholder, to accelerate its growth internationally and to enhance its content offer. The proceeds from this transaction will enable Orange to reinforce its efforts in the digital ecosystem. Finally, this agreement also illustrates our willingness to reinforce our partnership with Vivendi."

Vincent Bolloré, chairman of Vivendi's Supervisory Board commented, "The acquisition of 80 percent of Dailymotion's capital is an excellent opportunity that will provide the group with added reach in the diffusion of high-quality musical and audiovisual content across the world. We are particularly enthusiastic at the idea of supporting Dailymotion in this important new phase of their development as the company evolves into a reference global platform. This is a first step in our ambition to create a large, global group that is focused on media and content. In addition, this operation illustrates our capacity to develop international strategic partnerships, in particular with Orange."