France Telecom chief executive Stephane Richard will travel to U.S to seek a buyer for the company’s video-sharing website, Dailymotion, igniting discussion regarding state interference within the French economy. The French government opposed the sale of 75% of the company to Yahoo Inc..
Yahoo rejected to comment, had been in talks to acquire a 75% stake in Dailymotion. Which competes with Google’s YouTube. Industry minister, Arnaud Montebourg does not like the idea of one of France’s most successful starter being destroyed completely by American’s and pushed for a equal partnership, leading the talks to mischance and leaving France Telecom to search for another partner to help Dailymotion grow abroad.
Stephen Richard said that “Dailymotion is a unit of France Telecom and not of the state. It is the company, its management and board that should manage this issue,” he said in an interview. He said in conference that he would seek another partner.
President Francois Hollande, whose approval rating has fallen as low as twenty five p.c, is scrambling to strengthen state coffers and kick-start investment and payment as his growth, deficit and job creation goals collapse. One of the earliest being his Campaign pledge to impose a 75% income tax on high earners peoples.
France’s technology is on 3rd no in Europe after UK and Germany in terms of capital investments in previous year. Jean-David said France Telecom was not capable of giving Dailymotion worldwide reach and Montebourg’s decision was a big mistake. “Yahoo would have had no reason to hollow out Dailymotion. On the antonymous it would have likely made the company powerful and possibly hired more video engineers in France because they cost less than in Silicon Valley. Capitalists who might want to be active here could think double out of fear of government interference,” Montebourg said.