Opera Software to develop remaining business rather than sell-CEO
20/12/2016 10:28
OSLO, Dec 20 (Reuters) - Norway's Opera Software OPERA.OL
remains focused on developing its remaining business units
rather than selling more, its chief executive said following the
divestment of its TV business on Tuesday.
"Now we have to focus on developing the four companies we
have left, that is the only strategy we have," Lars Boilesen
told Reuters after selling the TV unit to tech-focused
investment firm Moore Freres.
However he would not rule out the possibility of further
divestment "if a good offer is to surface, but the focus right
now is to develop companies and create value".
"Synergies between the four companies are limited," he said.
In charge since 2010, Boilesen initially expanded Opera's
business through a string of acquisitions before putting the
whole company up for sale in mid-2015.
In the end only parts of the firm, the core internet browser
business and related units, were sold to a Chinese consortium.
urn:newsml:reuters.com:*:nFWN1AW0QK
The company said on Tuesday it expected to use proceeds from
the sale of the TV unit on extraordinary dividends. urn:newsml:reuters.com:*:nFWN1EE0WP
Opera received $80 million cash and preferred shares equivalent
to 30 percent of Opera TV's common equity.
In addition to announcing the sale of the majority stake in
its TV business to Moore Freres, the Norwegian software firm
separately warned of weaker earnings in its mobile advertising
unit. urn:newsml:reuters.com:*:nFWN1EE0WP urn:newsml:reuters.com:*:nFWN1EE0WU
Boilesen expected the market for mobile advertising to
remain tough into the first quarter of next year and said it
might take five to six months to see an improvement.
Opera needs to address costs and streamline this part of its
business, the biggest of its four remaining units, he said.
Opera's other units are Skyfire, an online cloud-based
service for operators of mobile phone networks, Bemobi for Apps
and Games, and virtual private network division SurfEasy.
Opera shares fell 6.9 percent to 40.3 crowns while Oslo
Bourse benchmark index .OSEBX was down 0.2 percent at GMT 0935.
(Reporting by Ole Petter Skonnord, writing by Stine Jacobsen,
editing by Alister Doyle and Louise Heavens)
((stine.jacobsen@thomsonreuters.com; +47 468 58 058; Reuters
Messaging: stine.jacobsen.thomsonreuters.com@reuters.net))
Keywords: OPERA SOFTWARE M&A/