Orange ends Canal+ talks over Dailymotion video website-report

PARIS, June 9 (Reuters) - French telecoms group Orange has ended talks with Vivendi's Canal+ over the pay-television operator taking a stake in online video-sharing website Dailymotion, newspaper Les Echos said on Monday.

The two sides did not agree on a strategy for Dailymotion, namely whether it should push more into paid content instead of the mostly free video that dominates the site (http://www.dailymotion.com) today.

The newspaper said that parallel talks with Microsoft could also fall through because the U.S. firm was only willing to invest in Dailymotion alongside another partner.

Orange has been searching for a partner for Dailymotion to help the website expand outside France and help it compete with much larger rivals such as Google's YouTube and IAC/InteractiveCorp's Vimeo.

Orange did not reply to a request for comment on Monday.

(Reporting by Leila Abboud; Editing by Greg Mahlich)