The Fat Lady Is Singing an Opera

29 05 2012



Opera would cost Facebook over $1 billion: analysts

OSLO (Reuters) – Opera Software would cost Facebook over $1 billion as competition from Google and others could push up the price tag, analysts said on Tuesday, as takeover talk pushed the shares up as much as 26 percent on Tuesday.

Oslo-listed Opera, coveted for its advanced mobile phone software technology, would be a perfect fit for Facebook but the firm’s business is also vital for some of the industry’s biggest players so any bid is likely to attract others to the table.

“Opera would be sensible for Facebook on several levels,” Arctic Securities said.

“It would enhance the now limited mobile experience of Facebook, improve Facebook’s mobile monetization problem, help Facebook retain online game developers leaving the social network over the lack of a mobile platform and further improve Facebook’s ability to target ads.”

Even if it does all that, I fail to see how that helps FB in the long term.  If it can generate a revenue stream from the mobile paradigm just by buying Opera, (though I fail to see why they can’t do that with out Opera), it will help FB remain profitable, but it won’t generate the revenue growth to justify a stock price above single digits.

If you think that buying Opera will save FB, then you’re as delusional as those who think that closing the bars in ESL early will turn it into a first world city.




2 responses

29 05 2012

Opera better make sure to get an all cash deal.

29 05 2012

Yeah no kidding.

FB today: 28.84 -3.07‎ (-9.62%‎)

What’s ironic about this discussion of FB buying Opera is that Blake Ross works at FB, in fact, he’s one of FB’s early hires.

It's your dime, spill it. And also...NO TROLLS ALLOWED~!

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