Report: Facebook May Purchase Opera for $1 Billion, Improve Mobile Experience
May 29, 2012 10:07 AM
comment(s) - last by
The purchase could not only enhance the social network's limited mobile experience, but also help Facebook draw in mobile game developers and improve mobile monetization
Facebook may be looking to purchase web browser Opera in an effort to enhance the social network's mobile experience, but such a takeover would cost it around $1 billion.
In many ways, Facebook is one of the internet's top dogs. It has over 900 million active users, and just recently launched the largest initial public offering (IPO) in history with a
valuation of over $100 billion
However, there is one thing Facebook doesn't have: a stellar mobile experience.
the IPO launch
, many investors worried that Facebook hadn't found a way to make money from an increasing number of users who log on to Facebook using mobile devices. The company's amended S-1 filing with the Securities and Exchange Commission earlier this month mentioned that Facebook revenue will decline as more user's access the site from mobile devices instead of PCs.
"If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected," said the filing.
Now, Facebook is looking to purchase Opera Software in hopes of addressing its mobile problems. The purchase could not only enhance the social network's limited mobile experience, but also help Facebook draw in mobile game developers and improve mobile monetization.
Opera is the perfect answer for Facebook, considering it is available on many different phones and works on various operating systems. Opera makes browsers capable of spanning many platforms like smartphones, PCs, TVs and tablets.
In addition, Opera can compress data by 90 percent, which helps users save money on data charges. The browser can also display advertisements efficiently, and it has significant market share in markets where Facebook is barely present, like India and Brazil.
However, $1 billion for an Opera Software purchase is a pretty hefty sum. Neither Facebook nor Opera have confirmed the bid, but Facebook could face trouble with competitors like Google who want in on Opera as well.
Google and Opera already have a solid relationship due to Opera being a default search partner worldwide outside of Russia/CIS. This means that the search giant likely won't let Facebook step in so easily.
Facebook recently made a
$1 billion purchase of photo sharing program Instagram
in order to help its mobile presence, but the U.S. Federal Trade Commission (FTC) is currently investigating the acquisition because it is over $68.2 million.
There are also reports that Facebook will
launch a phone of its own
by next year, and may be plotting to purchase HTC to do so. The phone is code-named "Buffy" for now, and will have HTC hardware with Facebook making the software.
This article is over a month old, voting and posting comments is disabled
5/29/2012 3:48:16 PM
(some text to appease post blocking.)
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
Report: Facebook to Launch Phone "By Next Year", Eyes HTC Purchase
May 28, 2012, 12:00 PM
Facebook Shares Will Open at $38 USD
May 17, 2012, 6:20 PM
Facebook IPO Exceeds $100 Billion Mark
May 15, 2012, 10:37 AM
FTC Launches Probe Into Facebook's $1 Billion Instagram Acquisition
May 11, 2012, 10:37 AM
Dutch Gov. to Google: Don't Spy on Us
December 2, 2013, 1:21 PM
Quick Note: Amazon to Use Unmanned Drones for 30 Minute Package Deliveries
December 2, 2013, 11:51 AM
Quick Note: Wi-Fi Hack Prompts European Parliament to Eliminate Access
November 29, 2013, 11:05 AM
NYT: NSA May Have Spied on Google, Yahoo Data Centers Via Fiber-Optic Cables
November 26, 2013, 3:35 PM
Quick Note: Intel Wants to Sell OnCue Internet TV Service for $500M
November 26, 2013, 12:40 PM
Facebook CEO Says Government "Blew It" with NSA Spying
November 25, 2013, 11:23 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Latest Blog Posts
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information