Facebook looking to buy Opera?

Facebook looking to buy Opera?
Facebook has proven itself to be a strategic purchaser of companies, having paid $1 billion for Instagram just after its release on Android. After being made available for Google's open source OS, Instagram installations exploded to total more than 50 million subscribers. Now, with Facebook a public company having to answer to its legion of stockholders, the company is seeking to buy another company where it can use its large number of subscribers to make a ton of cash. One such company apparently in Facebook's sight is Oslo, Norway based Opera Software. Opera's stock soared 26% on Tuesday due to the rumors of a bid for the third party browser firm.

Opera's browsers allow for a pleasant surfing experience, even on those phones on the low end of the technology spectrum. Opera Mini uses the company's own servers to load up a web site before compressing it and sending it to a phone, thus potentially saving the user from some data charges. Over 168 million people use Opera Mini. Opera Mobile is a third party replacement for a smartphone's stock browser and uses the phone's own technology to render sites.Investment bankers say that Opera has been up for sale for some time and said that Yahoo and Google would not be interested in the company. Other bankers said that Facebook would be interested in Opera as a way to enter emerging markets. Still, others aren't clear if a deal would end up in an outright sale of Opera or just close partnerships. One source told Reuters that while there is interest in the company, there is no "For Sale" sign on the software firm.. One thing that Operas might not want to lose is its strategic partnerships with companies like Google which it might have to drop in a Facebook acquisition of the company.

Norway's top bank, DNB, says that a buyer of Opera would have to pay 68.6 crowns, or double Friday's close, valuing the company at $1.35 billion. There are other things standing in the way of a Facebook-Opera deal. Opera's founder and top shareholder, Jon S. Von Tetzchner, wants the company to focus on internal growth and says that Opera should reach 500 million users by next year. He says he is not pushing for a takeover. Still, he said he is unaware of a bid but would have to support one if others are in favor of it. One vote in favor of such a deal might come from Opera CEO Lars Boilesen. The executive last October said he would "love to" work with Facebook. Boilesen said, "We are already Facebook's platform of distribution in emerging markets like Africa and India. A big part of the Opera Mini traffic is from Facebook. So we are already their channel in these markets."

Continuing its slump, Facebook dropped nearly 10% on Tuesday to $28.84 a share.

source: Reuters



1. Birds

Posts: 1172; Member since: Nov 21, 2011

Ok I love Facebook but it is doing simply tooooo much....lol Well it could be useful. THe bigger the ecosystem the better...

7. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

I like Opera browser and if it is true and if Facebook will f**k up such a good browser... Sad, sad things... :(

9. groupsacc

Posts: 232; Member since: Feb 28, 2012

Well it has to now more than ever because they are now a listed stock company. It needs to continually expand to keep those investors happy.

2. JeffdaBeat unregistered

Of course this is a rumor...but if true it just feels like no one is content with doing one thing right. Of course, you want your business to be more than just a one trick pony (Twitter?), but Facebook has enough to worry without getting into the browsing end of it. I'd say the same thing if Apple tried to get their hands into search or Microsoft started building their own computers...well...that might not be a bad thing. It feels like every company wants to do everything instead of just focusing on what they are good at. I wish Facebook would put a billion dollars into making their apps run faster instead...

3. jmoita2

Posts: 930; Member since: Dec 23, 2011

Jack of all trades... Master of none.

4. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Paid $1 billion for Instagram and face books stock keeps failing. Haha, how are they ever going to make all that money back? They tried a Facebook phone, well a HTC phone with a Facebook button. Those Facebook guys are so full of themselves, OK millions of people use Facebook, but spending a billion $$ for a app is just stupid. They could have bought Palm From HP and did better. LMAO this is what happens when you have kids in there early 20's worth a billion dollars.

5. BomberXL

Posts: 82; Member since: Jan 17, 2012

what im gathering is Facebook is trying to put itself in a position where it cant be beat from any spectrum of the Social Website battle, its integrated music, video, chat, messaging, photo sharing, ect. and trying to purchase al the biggest companies in each feild to really keeps itself in a stable #1 position for YEARS to come. its brilliant on their part, but really, do you think a website like this could last for decades? only time will tell i guess

6. theBankRobber

Posts: 682; Member since: Sep 22, 2011

I forgot that some of their money comes from Facebook games. My wife plays city vile on Facebook and spend a few dollars here and there. She has a friend who has lots of money and spends alot of money on her Facebook games to impress her friends. One day my wife spent $12 and I was like WTF haha .

8. -RVM-

Posts: 331; Member since: Oct 19, 2011

Leave Opera alone!

10. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

Opera Mini is a great browser, i just hope facebook doesn't strip out any necessary feature like they did with Snaptu :(

11. OpTiMuS_BlAcK

Posts: 418; Member since: May 04, 2012

Facebook is turning into Zynga, just buys anything they want..

12. jmoita2

Posts: 930; Member since: Dec 23, 2011

They better hurry, since their stock is in free fall. And soon they are going to have more pressing issues to deal with, such as insider trading and fraud charges on their IPO that are sure to be filed any time soon. Has Zuckeberg come out of hiding yet?

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