A Chinese Consortium Plans To Buy Opera, ForĀ $1.2 Billion

A Chinese Consortium Plans to Buy Opera — for $US1.2 ($2) Billion

How much would you pay for an unpopular browser? If you were a group of Chinese companies you'd probably think somewhere in the region of, oooh, $US1.2 billion ought to do it. The Financial Times reports that the Norwegian browser company has received an offer of $US1.2 billion for its takeover. The potential deal is being led by Kunlun Tech (a gaming company) and Qihoo 360 (which makes anti-virus and browser software). The bid is supported by two investment firms, too.

The offer seems a little high. In fact, compared to its stock prices before rumours of the deal began to swirl, the offer seems to overvalue Opera by an impressive 53 per cent. Perhaps unsurprisingly, Re/code reports that Opera's board is "unanimously recommending shareholders [to] approve the takeover", with its CEO explaining:

There is strong strategic and industrial logic to the acquisition of Opera by the Consortium. We believe that the Consortium, with its breadth of expertise and strong market position in emerging markets, will be a strong owner of Opera. The Consortium's ownership will strengthen Opera's position to serve our users and partners with even greater innovation, and to accelerate our plans of expansion and growth.

No shit.

[FT, Re/code]

Image by Alexander Supertramp / Shutterstock.com


Comments

    It would be so refreshing if they would just state the truth. "We believe the sale should go ahead because it's gonna make us rich."

    I had no idea opera was even a profitable business. How do they make money?

      Most of their revenue comes from licensed bundling of their mobile or "mini" browser for phone OEMs. For a while it was the stock browser for Symbian. And it's still preinstalled on some Android phone lines intended for markets with limited and/or expensive mobile bandwidth (typically developing world).

      Up until Opera switched to Chromium, they licensed parts of the Presto rendering engine for third-party use. Presumably if this arrangement is still in play there will be ongoing income from royalties.

    Interesting, I surprise it'll fetch this much... I would've imagined it had/has a big user base these days either...

    There must be some hiden agenda behind the acquisition.

    Back in the days of GPRS, I recall Opera Mini was great at rendering pages for low bandwidth and the UI was superior over default browsers.

    Last edited 11/02/16 7:54 am

    Opera is my preferred browser on my Galaxy S6. I don't use it on my desktop but for the phone I think it is the better option available. Fast browsing, easy to use, great for bookmarks, saving pages offline etc.

    I am with igby, how are then profitable?

    Genuine question and pardon my ignorance, how do companies that make only browsers like Mozilla or Opera make money to have such a huge valuation?

    Opera supply the browser for most of the mobile devices on the planet.
    Their tech works by opera intercepting all of the data to compress it.
    Do you trust a Chinese company with ALL your browser data?

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