Yahoo is planning to buy controlling stake in popular video sharing website Dailymotion. If the rumors are true, this will be the first major acquisition of Yahoo since she joined as CEO.
At this time, Yahoo is only planning to buy 75 percent stake of DailyMotion. Company can also consider to buy the remainder portion of the website in future. At this time, dailymotion has valuation of $300 million.
Dailymotion is similar to YouTube but it is popular only in Europe and few other places. According to comScore data, Dailymotion had 116 million users in January this year. Yahoo has large number of visitors but it fails to monetize the traffic as YouTube does. So, this deal can also increase the revenue of Dailymotion as Yahoo knows how to do it well.
Yahoo also has majority of its revenue from US. So, this deal will help company to expand overseas and reach to more users.
Dailymotion is owned by French telecommunications firm France Telecom-Orange, It acquired Dailymotion for $170 million in two phase. Yahoo and France-Telecom Orange both declined to comment on this.
