Opera, the company behind the Opera web browser for desktop and mobile devices, has received a $1.2 billion buyout offer from a consortium of Chinese Internet firms.
The company's board is recommending it take the deal which is a 53 per cent premium on Opera's close on the Oslo stock exchange on 4 February. Rumours of a possible buyout of the company led to its stock being suspended for two days.
The consortium offering to buy Opera is made up of many Chinese tech companies including Kunlun and Qihoo 360. It is also backed by the investment funds Golden Brick and Yonglian. Opera's CEO Lars Boilesen believes that the acquisition will put the company in a position to innovate and accelerate its plans for expansion and growth.
Opera first began looking for a possible buyer in August of 2015. The company's earnings had slumped, its browser had began to lose a steady amount of market share and advertising sales had slowed. The company decided to employ the services of Morgan Stanley International and ABG Sundal Collier to help it search for a buyer.
Opera's board has carefully reviewed the terms and conditions of the consortium's offer and are unanimously recommending that Opera accept the buyout. This could be a good move for the company as it will free up its resources and possibly give Opera an advantage in the Chinese market.