A consortium of Chinese companies, including popular game developer Kunlun, mobile security expert Qihoo and backed by investment funds Golden Brick and Yonglian, has offered to buy Opera Software for NOK 10.5 Billion ($1.2 Billion).
Yes, $1.2 billion, that’s what the consortium thinks the company is worth!
Opera Software is the name behind the immensely popular mobile and desktop browser Opera, running on billions of handsets across the globe. If this deal materializes, then it will provide an enormous user base for Opera in China. Further, Kunlun and Qihoo will be getting access to Opera’s mobile advertising platform.
Commenting on the buyout offer Opera CEO Lars Boilesen 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”.
Other than the mobile browser, Opera has developed a cutting edge compression technology naming it Opera Max which compresses the video without affecting the video quality. This enables users on slow bandwidth to watch videos seamlessly and without buffering. If you remember, Xiaomi has partnered with Opera to use this video compression technology in its operating system MIUI 7.
Opera CEO and board favor the takeover as this deal will reportedly boost the company’s plans for innovation and expansion. As a result, they are recommending the shareholders to approve the acquisition.
What do you think? Is this takeover a good idea?