Connect to share and comment

Consider the plight of the French entrepreneur

Yahoo wanted to buy a controlling stake in French company, called Dailymotion, for $225 million. But then the French government said it would not allow the deal to happen.

France blocks dailymotion yahoo dealEnlarge
This picture shows the logo of French video-sharing website Dailymotion. (Lionel Bonaventure/AFP/Getty Images)

Yahoo wanted to buy a controlling stake in French company, called Dailymotion, for $225 million.

But then the French government said it would not allow the deal to happen.

The reason: Yahoo is not a French company and transfering control of Dailymotion to Yahoo might result in the loss of a few French jobs.

That loud smack you just heard is a thousand French entrepreneurs facepalming themselves. Mon deiu!

Creating a startup, like Dailymotion once was, is a huge risk that's only worth it if there is serious upside.

Often that upside is the sale of a company.

The tech companies that can afford to make big acquisitions are mostly not French. 

That exit path is apparently off limits to French startups.

When you factor in how hard it is to fire people in France – thus increasing risk greatly – it's a wonder anyone creates new companies over there at all.

More from our partners, Business Insider:

Business Insider: The faboulous lives of Wall Street offspring

Business Insider: How Al Gore got to be insanely rich

Business Insider: Here's the world's first small and cheap Windows 8 tablet

Business Insider: How the wealthiest consumers use social media

Business Insider: Australia's economy is cracking

Original Source URL: 
http://www.businessinsider.com/for-comic-relief-consider-the-plight-of-the-french-enterpreneur-2013-5

http://www.globalpost.com/dispatch/news/business/companies/130506/france-blocks-yahoo-dailymotion-deal