A consortium of Chinese companies is looking to buy the popular web browser Opera in a deal worth $1.2 billion. This acquisition marks a significant move in the tech industry, reflecting the growing influence of Chinese firms in the global market.
The companies involved in this deal include two prominent Chinese technology firms, Kunlun Tech and Qihoo 360, as well as an investment firm. Kunlun Tech is known for its investments in various tech ventures, while Qihoo 360 is a major player in the cybersecurity and software industry in China.
Details of the Acquisition
The $1.2 billion offer is for the entire company, representing a 53 percent premium on Opera’s current market value. This substantial premium indicates the consortium’s strong interest in acquiring Opera and their belief in its potential for growth. Opera’s board has recommended to its shareholders that the deal be accepted, highlighting the strategic benefits that the acquisition could bring.
The transaction would give Opera access to the extensive internet user base of Kunlun and Qihoo in China, as well as the financing and other support of the Consortium that would allow for the full potential of the Company to be realized. At the same time, Kunlun and Qihoo would be able to cross-sell their products and services to the Opera user base, and benefit from Opera’s leading mobile advertising platform.
This statement underscores the mutual benefits of the deal. For Opera, the acquisition means access to a vast new market and additional resources to enhance its offerings. For Kunlun and Qihoo, it provides an opportunity to integrate their products with Opera’s technology and expand their reach globally.
Regulatory and Shareholder Approval
The deal will need to be approved by various regulators and, of course, the company’s existing shareholders. Regulatory approval is a critical step in the acquisition process, as it ensures that the deal complies with legal and market standards. Shareholder approval is equally important, as it reflects the confidence and agreement of those who have invested in Opera.
The acquisition of Opera by Chinese firms is part of a broader trend of Chinese companies expanding their influence in the global tech industry. In recent years, Chinese firms have been increasingly active in acquiring foreign companies, investing in new technologies, and expanding their market presence. This trend is driven by the rapid growth of the Chinese economy and the government’s support for technological innovation.
Opera, known for its innovative web browser, has a significant user base worldwide. The browser is particularly popular for its speed, security features, and user-friendly interface. By joining forces with Kunlun and Qihoo, Opera can leverage their expertise and resources to further enhance its product and expand its market share.
In addition to its web browser, Opera has also made strides in the mobile advertising space. Its mobile advertising platform is one of the leading platforms in the industry, providing advertisers with effective tools to reach their target audience. This platform will be a valuable asset for Kunlun and Qihoo, allowing them to enhance their advertising capabilities and generate additional revenue.
The acquisition also highlights the increasing importance of strategic partnerships in the tech industry. By collaborating with other companies, tech firms can combine their strengths, share resources, and achieve greater success. This trend is likely to continue as the industry becomes more competitive and companies seek new ways to innovate and grow.
The acquisition of Opera by a consortium of Chinese companies is a significant development in the tech industry. It reflects the growing influence of Chinese firms in the global market and the importance of strategic partnerships. With the support of Kunlun and Qihoo, Opera is well-positioned to enhance its offerings, expand its market presence, and achieve its full potential.
Source TechCrunch
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