French media group Vivendi has entered exclusive talks to buy 80 percent of video-sharing website Dailymotion from telecom operator Orange for 217 million euros ($236 million), the companies said in a joint statement on Tuesday.
Orange would keep the remaining 20 percent of the company as part of the deal, which corresponds to an enterprise value for Dailymotion of 265 million euros, the companies said.
“Orange and Vivendi will now enter into a period of exclusive negotiations in order to finalize the terms of this operation,” the companies said.
“For Orange … this operation meets the group’s ambition to bring Dailymotion together with a strategic content-focused partner that is capable of giving it the means to accelerate its growth and to turn it into one of the world’s largest content distribution platforms.”
Orange said it will use the proceeds of this transaction to finance and reinforce its efforts in its digital business.
(Reporting by James Regan; Editing by Michel Rose)
This article originally appeared on Recode.net.