A group of Chinese investors sees USD1.2 billion worth of potential in the world’s sixth-place Internet browser, Opera. The Norwegian company behind the Opera web browser confirmed that it has received an acquisition offer from a group including Chinese consumer tech companies Beijing Kunlun Tech and Qihoo 360 Software.
The statement said: “Opera Software ASA has reached an agreement with Golden Brick
Silk Road (Shenzhen) Equity Investment Fund II LLP, the general partner of which is
Golden Brick Silk Road Fund Management (Shenzhen) LLP and the limited partners of which are Beijing Kunlun Tech Co. Ltd., Qihoo 360 Software (Beijing) Co. Ltd. and Yonglian Investment Co., Ltd., whereby Golden Brick will launch, through a directly or indirectly wholly owned special purpose vehicle, a recommended voluntary cash offer for 100% of the shares of Opera.
The group, which includes a Chinese private equity firm and two upstart Chinese technology companies, said on Wednesday that it had offered to acquire the Norwegian company behind the Opera web browser. The deal would give the buyers a name that has faded amid intense competition from Google’s Chrome and other browsers but still has a following in the developing world.
The offer is the latest effort by Chinese technology companies to look abroad. One of the partners behind the Opera bid, the mobile-game maker Beijing Kunlun Tech, acquired a 60 percent stake in Grindr, valuing that social networking app for gay men at $155 million. Chinese tech giants like Alibaba Group and Tencent Holdings have also made purchases outside their home market in recent years to expand their reach.
Still, Opera has pockets of strength in some fast-growing Internet markets. It is the top browser in Africa, according to StatCounter, and it is the third most popular in Russia and India and the fourth in Indonesia.
Opera Software, the browser’s parent company, said in August last year that it was undertaking a strategic review. It has reported annual losses over the past two years, and its growth prospects have disappointed investors. Even after takeover rumors drove up its shares in recent days, they are still down about one-quarter from a year ago.
The Chinese group is led by Golden Brick Silk Road Fund Management of China and includes Yonglian Investment, an affiliate of Golden Brick Silk Road Fund Management, Kunlun Tech and the Chinese antivirus and search company Qihoo 360. Qihoo is well known in China for doing battle with China’s tech titans, like Tencent. Golden Brick is an affiliate of Golden Brick Capital, a private equity firm with headquarters in Hong Kong.
The group has offered 71 Norwegian kroner, or $8.31, a share, a premium of about 56 percent, based on the average share price over the past 30 days.
Opera said that the agreement would give Opera access to Kunlun and Qihoo’s Internet users in China, as well as funding. Kunlun and Qihoo will also be able to sell their products to Opera users and use its mobile advertising platform.
Qihoo runs its own mobile browser, which it could combine with Opera’s, and it also could benefit from the company’s advertising network. Kunlun, which makes and licenses games, could use Opera’s apps as a way to broaden the distribution of those games.
Opera’s board has unanimously decided to recommend that shareholders accept the offer.
The deal is still conditional on Kunlun’s getting approval at its general meeting in March to participate in the consortium.
