14 DAY TRIAL // Opera has announced today that its $1.2 billion sale to a conglomerate of Chinese companies has failed to receive regulatory approval. The two parties have agreed on a new deal that has the Chinese companies taking control of a few sections of Opera Software's business.
This new deal is worth only $600 million, half the initial price, and the Chinese group will be taking over the desktop browser division, the mobile browser division (including Operator Co-brand solutions), and the Opera Performance and Privacy Apps divisions.
The group will receive control of Opera's 29.09 percent stake in the Chinese company nHorizon, in which Opera Software has invested, and they will also take over the reins of Opera's technology licensing business outside of Opera TV.
Initial deal failed to receive regulatory approval
Not included in the deal are Opera's operations such as Opera Mediaworks, Opera Apps & Games (including Bemobi), and Opera TV, which will continue to remain under Opera Software's control.
According to Opera, the remaining assets generated revenue of $467 million in 2015, with a profit of $74 million before taxes. On the other hand, the sold assets generated revenue of $149 million and profits of $34 million in 2015.
The two parties expect to close this transaction and make the sale final in the second half of Q3 2016, pending further regulatory approval.
The original deal that included a total sale of the company did not receive this regulatory approval. It is unknown if Chinese or US authorities were against the sale. Opera's board has already approved the new deal.
Chinese group gets to keep the Opera name
Opera's CEO, Lars Boilesen, will serve as CEO for both companies until December 31, 2016. After that, he'll remain the CEO of the leftover Opera divisions.
According to the deal, the Opera brand is included in the deal, and the leftover Opera company will have to find a new name in 18 months after the deal finalizes.