Opera Software to Sell Internet-Browser Business to Chinese Consortium
July 18 2016 - 5:40AM
Dow Jones News
Opera Software ASA said it would sell its internet-browser
business to a Chinese consortium, after a $1.2 billion bid for the
entire company was terminated Monday after failing to obtain
regulatory approvals.
Opera said the original deal failed to obtain the required
regulatory approvals by a July 15 deadline, but declined to specify
of which country it lacked governmental approval.
Instead, the Chinese bidders, including security-software firm
Qihoo 360 Technology Co. and online-game company Beijing Kunlun
Tech Co., have agreed to buy certain parts of Opera's consumer
business in a deal valued at $600 million on an enterprise
basis.
The consortium will now buy Opera's mobile and desktop browser,
the Norwegian company's flagship products, as well as its
performance and privacy apps, technology licensing outside of Opera
TV and Opera's 29.09% stake in Chinese joint venture nHorizon.
Opera Mediaworks, Apps & Games and Opera TV aren't included in
the sale, Opera said.
Opera Software was set up in 1994 as a research project within
Norway's biggest telecom provider, Telenor ASA, and became a
stand-alone company in 1995.
Opera recently launched free mobile browsers with built-in
advertisement blocking and a virtual private network feature. It
said its consumer products have 350 million monthly active
users.
The Chinese bidders originally offered 71 Norwegian krone ($8.4)
a share for Oslo-based Opera in February, a deal the Opera board
recommended its shareholders accept.
Opera said it expects the new deal, which is conditional on
approvals from governmental authorities, to close during the third
quarter.
Opera shares were nearly 16% lower in early morning trade in
Oslo.
Write to Dominic Chopping at dominic.chopping@wsj.com and
Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
July 18, 2016 05:25 ET (09:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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