Orange is saying ‘oui’ to Dailymotion as the French network operator enters into exclusive negotiations with the popular online video site. Orange hopes to acquire a 49 percent stage in Dailymotion, giving its key competitor, YouTube, a run for its money.

That’s because Dailymotion is the second largest online video site worldwide and will grant Orange the chance to develop a complete multi-screen video offer.

Orange’s sizable share in Dailymotion won’t come cheap: 58.8 million euros ($80.2 million) to be exact. But according to a press release from the network operator, “This project is strategic for Orange insofar as the Dailymotion video platform will immediately provide the group with a solution that can meet the increase in its customers’ video use across all connected screens (via internet, WiFi or 3G). The operation will also enable Orange to accelerate its multi-screen strategy by anticipating the growth in high definition, 3D and continuity across all screens.”

In fact, in the United States alone, the average time spent on Internet videos is now more than 12 hours a month per Web user. In France, one out of three smartphone owners watches videos each week. With a billion videos watched each month and 93 million unique visitors, Dailymotion could help Orange seize a significant share of this lucrative video market.

Stéphane Richard, the CEO of France Telecom-Orange, said in a statement: “This operation once again illustrates the role that Orange intends to play in the content value chain. Although we are no longer publishers ourselves, we are strengthening our position in the fields of aggregation and distribution.”

“We will provide our customers with an enriched and innovative video offer combining Dailymotion’s know-how and diversity of content with the quality of our networks across all connected screens. Our role is to support our customers in this digital revolution - we would like to bring them into the 'Cloud Video’ world where Dailymotion is a major player,” added Richard.

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