Opera falls into Chinese hands
Key components of Opera Software are to be taken over by a Chinese business consortium. A planned $1.24 billion takeover of the entire operation fell through after failing to gain regulatory approval, but a new deal has been struck in its place.
Instead, the consortium -- comprising Qihoo 360 Technology Co, Beijing Kunlun Tech Co and others -- will take over just a portion of Opera Software's consumer business for $600 million. With the desktop and mobile version of the Opera web browser now falling into Chinese hands, there will no doubt be concerns about potential privacy issues based on China's history.
It is not entirely clear why the original deal fell through. Approval from both US and Chinese regulators was needed and Opera has only said that this was not won, without revealing which side failed to agree to it.
As reported by Reuters, in addition to Opera's browsing arm, the consortium will also acquire the company's privacy and performance apps, its stake in nHorizon, and its technology licensing business. In a statement, Opera said:
Closing of the transaction is expected to take place during the second half of the third quarter of 2016.
The deal, which has already been approved by Opera's board of directors, sees the company's advertising and marketing business, its TV operations, and game-related apps left untouched.
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