Deezer in talks with Samsung, Dailymotion with Microsoft

French online music group Deezer is studying a commercial and industrial agreement with Korean electronics group Samsung Electronics Co Ltd, which might also take a stake in its capital, a French weekly said.

Le Journal du Dimanche also reported that French video-sharing website Dailymotion, owned by French telecoms operator Orange , is in talks with software maker Microsoft about a stake in its capital.

The two French firms were not immediately available for comment.

Privately-held Deezer, created in 2006, says it has more than 12 million users worldwide and a catalog of 30 million songs, to which users can get free, unlimited access for 12 months. It also sells paying subscriptions, which offer ad-free, unlimited music streaming.

The company is one of the main competitors of Swedish online music group Spotify, which in November raised 250 million dollars from private investors.

Orange Chief Executive Stephane Richard said last month that Dailymotion was close to signing a partnership in the United States and was working on another in Asia to help it to take on market leader YouTube.

Though he did not name the companies, Richard said the potential U.S. partner is "a major player" in the digital economy and described the Asian company as "a significant regional operator".

Orange had been in talks with United States-based web portal Yahoo last year to sell a 75 per cent stake in Dailymotion, but the deal foundered in May after France's industry minister slammed the idea of one of the country's most visible start-ups being "devoured" by Americans.