FT eyes video firm to compete with YouTube

France Telecom is eyeing the acquisition of 50% of Web video provider DailyMotion, as part of its plan to expand into new services.
Company sources say the French incumbent is keen to purchase at least 33% of the video firm, and will commence formal negotiations over the stake on Jan 25.
DailyMotion generated 93 million visits in October, and the acquisition would open up lucrative advertising revenues for France Telecom, which is looking for a means to compete with rival services like YouTube, Bloomberg noted.
The reports come less than a week after Orange unveiled a joint venture to combine its premium ciné star cinema package with media firm Canal Plus’ TPS Star service – a move chief Stéphane Richard said would advance the operator’s content development strategy.
Richard last month revealed the firm has several bidders in the pipeline for its Orange Sports channel, as he seeks to build partnerships to advance France Telecom’s five year plan and cut the burden of video services on the operator’s networks.