PARIS (Reuters) - France’s FSI strategic investment fund will take part in a 17 million euros ($25 million) capital raising for web video share site Dailymotion, the Gallic rival of Google Inc’s YouTube.
The money raised will be used to accelerate Dailymotion’s expansion, notably abroad, the FSI said in a statement on Thursday.
“We are one of the rare French players that can participate in the future (sector) consolidation,” Dailymotion Chief Executive Cedric Tournay told Reuters.
The FSI will invest 7.5 million euros in the transaction, alongside Dailymotion’s existing shareholders Advent Venture Partners, AGF Private Equity, Atlas Venture et Partech International.
Dailymotion, which says it has 60 million unique visitors worldwide, also aimed to post a profit next year, having reached breakeven, Tournay said.
The company had no plans to seek a stock market listing in the short term. “We will consider it within two to three years,” said Tournay.
A spokesman for the FSI, which will be represented on the board of directors of DailyMotion, would not say what percentage of DailyMotion’s capital the FSI would buy.
(Additional reporting by Dominique Vidalon; Editing by Dan Lalor and David Holmes)
($1 = 0.6697 euro)
Reporting by Dominique Vidalon