Chinese Consortium's $1.24B Bid To Acquire Opera Software Fails, $600M Deal Agreed Instead (tech.eu)

Posted by msmash on Monday July 18, 2016 @02:40AM from the something-better-than-nothing dept.

The $1.24 billion takeover of Opera Software by a Chinese consortium of internet firms has failed, Opera said on Monday. The deal did not receive the required regulatory approval in time of a final deadline. But they will be doing some business. The consortium will now acquire only certain parts of Opera's consumer business, including its mobile and desktop browsers, for $600 million on an enterprise value basis. Tech.eu reports: What will not be acquired by the consortium is: Opera Mediaworks, Apps & Games and Opera TV. In 2015, Opera says these business units combined delivered revenues of $467 million. The company will report second-quarter results on August 31, 2016.

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Re:Insane by dnaumov · 2016-07-18 02:59 · Score: 4, Insightful

Why would anyone pay that much for Opera?
Why would anyone pay $600M for something with annual revenues of $460M? Best hopes of 5 years to recover the investment, but more likely 10 or more years? That makes no sense.
Because recovering your entire investment in 5-10 years is considered a very good outcome? You do realize that the stock market returns as a whole over the long term are in the ballpark of 10% per annum, right?