Yahoo could purchase as much as 75 percent of Dailymotion, which is owned by French telecommunications firm France Telecom-Orange, according to the newspaper report, which cited anonymous sources.
Dailymotion could be valued at roughly $300 million, according to the report, which noted that the deal is not imminent and could fall apart.
"We are unable to confirm, deny or comment on speculation regarding potential talks between Yahoo and Orange at this time," Dailymotion Managing Director Roland Hamilton said in an emailed statement.
Yahoo and France-Telecom Orange declined to comment.
France Telecom-Orange acquired Dailymotion for $170 million through a two-phase deal, with the most recent transaction closing in January. Dailymotion's editorial and executive management operate independently of France Telecom-Orange.
Dailymotion is the No. 12 ranked online video Web property in the world, according to industry research firm comScore. It says Dailymotion has 116 million unique monthly visitors and more than 2 billion videos viewed. Google Inc, which owns YouTube, is the world's No. 1 Web video property while Yahoo's various websites ranked 10th on the list.
The transaction for Dailymotion would represent Yahoo's largest deal since Mayer, a former Google executive, took charge last year. Yahoo has acquired several small mobile and web start-up companies since Mayer became chief executive last year.