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Opera's $1.2 billion takeover is no more, new deal proposed

Opera was supposed to be bought out by "Golden Brick", a tech consortium, for $1.2 billion. But the deal fell through and a new offer is on the table for $600 million.
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Published onJuly 18, 2016

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Opera, known for their suite of web browser apps, was supposed to be bought out by a Chinese tech consortium led by Qihoo 360, known as “Golden Brick” for the likes of $1.2 billion. Do to regulatory issues, though, the deal has just fallen through, according to a report from Reuters.

The original deal was to buy 100 percent of Opera’s operations. Interestingly, the price proposed is actually 53% higher than what Opera’s trading price states. Opera released a statement (PDF here) saying that they have unanimously decided to recommend that the shareholders accept the deal. This fell through, however, do to regulatory issues. Now a new deal has been proposed.

The same consortium proposed a new deal priced at $600 million for a lesser stake in Opera
Upon hearing the news of the regulatory issues, the same consortium proposed a new deal priced at $600 million for a lesser stake in Opera. The new deal says that Golden Brick will get Opera’s mobile and desktop browser operations, tech licensing not including Opera TV, its performance and privacy apps and finally Opera’s 29 percent stake in Chinese JV nHorizon.

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As stated, since this is not a 100% buyout, there are a few services that will not be handed over to Golden Brick. These include Opera Mediaworks, Opera Apps and Games, and Opera TV. Opera will also keep about 560 employees from their 1600 employee base.

Opera’s name and logo will also be going to Golden Brick, so the remaining company will have to find a new name, according to Opera.

The new deadline for the deal is October 31, 2016 with an automatic extension to December 31, 2016 if both sides are not ready yet. If it does not go through this time, Golden Brick could face $100 million in fees and only $40 million if the issue is regulatory again.

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