Opera Software Gets a Buyout Offer for $1.2 Billion from Chinese Consortium Lead by Qihoo

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Opera Software, the company behind one of the most used browsers on mobile and desktop has received an offer from a consortium of Chinese companies. The browser company was up for a sale from a long time and has received a buyout offer for about $1.2 billion. The consortium consists of mobile game developer Kunlun and mobile security maker Qihoo and is backed by investment funds Golden Brick and Yonglian.

Talking about the buyout offer, the Opera software started exploring a sale after missing financial targets due to sluggish ad sales. The company was valued at $1.08 billion back in August 2015 and the buyout offer which they have received seems to be a best one they could deny at the moment.

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Does $1.2 billion to Opera Software Makes Sense?

The deals seem to be balanced and open up a lot of opportunities to both the players involved. One hand, the Opera products can get a boost from the user base in China which is currently the number one mobile internet consumption country in the world. On the other hand, Qihoo and Kunlun can hope to cross-sell their products and services to the Opera user base and take advantage of Opera’s mobile advertising platform.

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Commenting on the buyout offer, Lars Boilesen, Chief Executive Officer of Opera, said,

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.

According to Opera, the company has over 350 million user base spread across mobile and desktop. Total Opera mobile users reached 291 million in June 2015. Opera has been always around web technology and has killer applications under its name. Some of the them are Opera browser, Opera Mini, Coast browser of iPad and Opera Max.

Apart from all these, it has also forayed into mobile advertising business with a huge investment. In 2015, the Opera software acquired VPN service SurfEasy, and subscription-based mobile-app-discovery service Bemobi. It was previously linked with Facebook where the latter was told to made an offer to Opera software.

In terms of the market share, Opera Mini has about 7.28 percent of the share compared to 41.57 percent for Chrome, 34.12 percent for Safari and 11.13 percent for the Android browser by the end of January 2016.

Well, Opera is probably the only browser that had their footprint on almost all the mobile operating system starting from Android, iOS, Windows Phone, Symbian, Maemo, Bada, BlackBerry and Windows Mobile. Hope this deal helps them in conquering the spot that’s been lost lately.

Source: Opera

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Vinay

Avid blogger, crazy about gadgets and mobiles especially about Android powered devices! Tech is all you get out of me! You can follow him on Facebook and on Twitter. To get in touch, simply drop a mail

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