Microsoft is in talks with French telecom firm Orange over collaboration with its internet-video site Dailymotion.
According to Orange CEO Stephane Richard, the company would still hold a majority stake in Dailymotion, as it continues looking for partners outside of Europe for international development.
"We have ongoing talks, particularly with Microsoft, which doesn't necessarily mean that we'll come to a deal," Richard told French news channel BFM.
"I think it makes a lot of sense for us, as for Microsoft, to reach an accord that would be above all a partnership."
Orange has also been in talks with other potential tie-ups for Dailymotion, including French firms which are focused on developing content.
"For the time being Dailymotion or Youtube are 100 percent free," Richard said.
"But the future of such sites is to make high-quality content available for a charge, which justifies us speaking to content-creators."
Last year, Yahoo offered $225m to acquire a 75% stake in the online video site.