| SAN FRANCISCO, April 30
SAN FRANCISCO, April 30 Yahoo Inc has
abandoned an effort to acquire a majority stake in online video
website Dailymotion due to objections by the French government,
according to media reports, scrapping what would have been the
biggest deal in the 10-month tenure of Yahoo CEO Marissa Mayer.
Yahoo had been in talks to buy a 75 percent stake in
Dailymotion, owned by telecommunications company France-Telecom
Orange, in a deal that would have valued the video website at
But French government officials raised concerns that the
country would lose control over one of its biggest Internet
industry successes in such a deal, according to a person
familiar with the matter.
French government officials and France Telecom executives
sought to arrange a deal in which Yahoo would take a 50 percent
stake instead, but Yahoo balked, the Wall Street Journal
reported on Tuesday.
Yahoo and Dailymotion declined to comment on the matter.
Dailymotion is among the most popular online destinations
for video, although it lags far behind Google Inc's
YouTube, the world's dominant video website.
News that the deal was running into trouble was first
reported by French media last week.
France Telecom-Orange acquired Dailymotion for $170 million
through a two-phase deal, with the most recent transaction
closing in January. Dailymotion's editorial and executive
management operate independently of France Telecom-Orange.
Online video, which commands higher ad rates than
traditional Web content, is increasingly important to Yahoo as
it seeks to reverse a multiyear decline in revenue and visitor
Mayer, who took the reins of the struggling Internet pioneer
in July, has so far focused her acquisition efforts on scooping
up small, mobile start-up companies.