The Chinese will buy Opera assets cheaper than expected

Opera brand will become Chinese

Opera creative director Arnfinn Hushovd (Arnfinn Hushovd) demonstrates the new corporate identity of Opera Software in September 2015

A consortium of Chinese companies Kunqi and the Norwegian company Opera Software have revised the terms of the deal to buy Opera Software. The transaction amount was reduced from $ 1.24 billion to $ 600 million, and the following businesses were excluded from the list of assets sold:

• Opera Mediaworks
• Opera Apps & Games (including Bemobi)
• Opera TV

The rest is still. Go to China:
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• mobile browser, including co-branding solutions with operators;
• desktop browser;
• software for performance and information security;
• Opera's licensed business, with the exception of Opera TV;
• Opera brand and trademarks.

The Chinese receive all associated assets, Opera’s intellectual property rights and approximately 1,100 of the company's 1,566 employees .

The reason for canceling previous agreements was that the regulatory authorities did not approve the deal by the due date until July 15. Under the terms, the deal was to be approved by the regulators of China and the United States. It is not known who exactly “blocked” it (formally, the transaction was not blocked, just the answer did not come within the prescribed period).

The Chinese consortium, which includes the IT company Qihoo 360 Technology and the distributor of online and mobile games Beijing Kunlun Tech, should now be approved for a new deal.

According to the initial terms of the transaction, Opera Software was valued at $ 1.24 billion, 46% above market capitalization: 71 kroons each. Naturally, after the announcement of the stock rose in price. Now there is no question about the sale of shares.

This morning Opera's securities fell by 17% to a seven-month low of 50 kroons (thus, the company's capitalization was $ 860 million at the time of the maximum drop in stocks), but the Norwegian company management says that there is nothing to worry about. According to Sverre Munck, Chairman of the Board of Directors, shareholders will receive compensation in the form of “extremely high dividends” in the fall of 2016. Munik did not specify exactly what the dividends will be.

According to Bloomberg , the remaining assets are capable of bringing Opera revenue from $ 570 to $ 605 million per year, and profit before taxes this year will be from $ 75 to $ 90 million.

Thus, the company Opera Software will remain Norwegian and will retain part of the business. But the Opera brand goes to the Chinese, so the company will now have to look for a new name. She has been given 18 months to do this.