For years, France sat on the sidelines while foreigners snapped up its most prized startups. So when Yahoo started circling Dailymotion, a smaller, French-born version of YouTube, the government put its foot down.
The French government’s decision to block France Telecom SA’s sale of its Dailymotion SA unit to Yahoo! Inc. isn’t indicative of a harder stance against foreign investments, Industry Minister Arnaud Montebourg said.
France Telecom SA will resume its search for a partner for the video site Dailymotion SA as negotiations with Yahoo! Inc. collapsed after intervention by the French government, according to a person with direct knowledge of the situation.
European stocks rose to a seven-week high as the European Central Bank lowered its benchmark interest rate, while companies from Royal Dutch Shell Plc to Bayerische Motoren Werke AG posted profit that beat analysts’ estimates.