China’s $1b buyout of Opera falls through, but a new deal is being thrashed out

One of Opera’s web browsing apps shown on an Android-based phone. Photo credit: Opera Software.

A Chinese consortium’s bid to acquire Norway’s Opera, maker of the popular mobile web browser, has fallen through after being rejected by the government. The initial offer in February to acquire the entire company was worth US$1 billion.

Bloomberg reports:

Opera Software ASA fell as much as 17 percent after its sale to a Chinese group failed to get government approval and was canceled, and the company instead agreed to sell its web-browser business for $600 million.

The Norwegian company will sell businesses including browsers for mobile devices and desktops, technology licensing and a stake in a Chinese venture to the same group that attempted the full takeover, led by private-equity firm Golden Brick Capital Management, according to a statement Monday. Opera will keep businesses such as applications and games.

Opera has 350 million monthly active users of its various web browsing apps.

The consortium includes Qihoo, which is China’s second most popular search engine.

The deal needed approvals “from Chinese authorities and the Committee on Foreign Investment in the US, which can recommend transactions be blocked if they pose a risk to national security,” notes the Bloomberg article.

The new deal is still not finalized.