Published May 29, 2012 15:25
Opera Software shares soared over 20 percent on Tuesday on talk Facebook was in discussion to buy the firm, while analysts said competition from Google and others could push the price tag of any deal over $1 billion.
Shares of Oslo-listed Opera, coveted for its advanced mobile phone software technology, jumped as much as 26 percent, valuing the firm at over $800 million.
Opera's mobile technology, along with 170 million Opera Mini users, give the firm extensive commercial relationships with mobile phone manufacturers and operators.
Facebook has struggled to convert its rapidly increasing traffic from mobile platforms to revenue, and purchasing Opera would be a faster solution than building its own platform or browser, analysts added.
"Opera would be sensible for Facebook on several levels as 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 a lacking mobile platform and further improve Facebook's ability to target ads," Arctic Securities said.