Opera is reportedly accepting a $1.2 billion USD acquisition offer from a group of Chinese firms. Venture Beat says that the deal is a testament to the firm’s patience and persistence. The Norway based company is not only known for its web browser, but its opera mini mobile browser as well.
In fact, while it is considered to be ranked fourth by market share, its accelerating mobile advertising business has caught the Chinese investors’ interests which lead to the said deal. On its press release this Feb. 10, the company’s board has posted that it had recommended to its shareholders to accept the offer from the China based firms.
According to Channel News Asia the group of Chinese investors include Golden Brick Silk (Shenzhen) Equity Investment Fund II, and partners Qihoo 360 software, Beijing Kunlun Tech and Yonglian (Yichuan) Investment. The offer represents a premium of about 53 percent of the closing price on Feb. 4, a day before the speculations started to come out.
The Norway based company’s browser which claims to have 350 million users have struggled in the Western market, reports CNET. With the deal in mind, China could prove to be profitable for the firm. This is because it is a place where Google’s Chrome browser does not come pre-installed on Android phones like in other places.
Opera also said that with the transaction in place, it will give the company access to the extensive user base of Kunlun and Qihoo in China. It would also give the Norwegian company financing and other support from the Chinese consortium that will allow it to realise its full potential.
The company CEO Lars Boilesen also released a statement saying that “there is a strong strategic and industrial logic to the acquisition of Opera by the consortium.” The company believes that with the Chinese consortium’s expertise and strong market position will prove a strong owner of Opera. On the other hand, Kunlun and Qihoo would be able to cross-sell their products within the Opera user base and benefit from the company’s leading mobile advertising.
According to Venture Beat, the browser company was founded in 1995 during which it focussed on the internet browser market having competition with Microsoft and Netscape. Lately, the Norwegian firm slowly shifted its attention to the mobile market which prove successful as it helped it survive the competition. However, they were barely surviving until 2013.
During 2013 the company decided to launched its mobile advertising products that included video components under Opera Mediaworks. This proved successful as of the fourth quarter of 2015 the company reported that its revenue was up by 25 percent compared to 2014.
Its mobile advertising products has become popular by late last summer that the company started to receive inquiries from different investors and began to evaluate them formally. Now with a deal in place, it seems like the browser firm will continue to grow and expand its business.