Target Information

Opera Software, known for its widely-used browser, officially debuted on the NASDAQ stock exchange on July 27, 2018, under the ticker symbol 'OPRA', with an offering price of $12 per share. The company, founded in 1995 and headquartered in Norway, also maintains a research and development center in China. Opera made history as the first browser integrated with a cryptocurrency wallet, enhancing its appeal in an increasingly digital economy. Following a 100% acquisition by a consortium led by Kunlun Tech in 2016, Opera has broadened its offerings from a browser-focused service to a comprehensive platform that integrates search, navigation, content distribution, and social networking.

As of March 31, 2018, Opera reported an average of 322 million monthly active users. The company generated $39.4 million in revenue for the first quarter of 2018, marking a 54.8% increase compared to $25.5 million in the same period in 2017. The total revenue for 2017 was $129 million, a 20.2% rise from $107.3 million in 2016. Opera's diverse business model now encompasses targeted advertising and content monetization, alongside its traditional navigation and search functionalities.

Industry Overview in Norway

The tech industry in Norway is characterized by innovation and a strong commitment to digital solutions. With a mature internet infrastructure, the Norwegian market has seen significant growth in online services and applications. As companies leverage advanced technologies such as artificial intelligence, there is an increasing demand for user-friendly platforms that provide seamless experiences. The digital landscape is competitive, yet the market remains conducive for new entrants that can offer unique value propositions.

Norway is recognized as one of the leading nations in adopting mobile broadband, contributing to a substantial rise in mobile usage. This shift has enabled developers to create applications that cater to the nuanced needs of users, fostering a culture of innovation. Companies like Opera are well-positioned to capitalize on these trends, particularly by integrating AI and machine learning into their services to enhance user engagement and retention.

Moreover, the Norwegian government’s ongoing initiatives to promote digitalization and technology adoption bolster the growth prospects for tech companies. Investment flows into the digital sector remain robust, creating opportunities for scaling operations. The emphasis on AI-driven technologies aligns with global trends, offering a competitive edge for local companies like Opera in expanding their international footprint.

Rationale Behind the Deal

IDG Capital's investment in Opera stems from a strategic vision to participate in the burgeoning digital economy, particularly through the integration of cryptocurrency solutions within mainstream technology applications. Given the global surge in digital asset interest, Opera's positioning as the first browser with built-in cryptocurrency functionalities represents a significant opportunity for growth and expansion.

Additionally, with the increasing reliance on mobile applications for information consumption and entertainment, Opera’s plans to enhance its content distribution capabilities align perfectly with market trends. By investing in Opera, IDG Capital aims to strengthen its portfolio in the tech sector and capitalize on emerging revenue streams in content and advertising.

Information About the Investor

IDG Capital is a prominent investment firm known for its strategic investments in high-potential startups across various sectors, particularly in technology. The firm has a robust track record of backing innovative companies that demonstrate significant growth potential. With extensive experience in the investment landscape, IDG Capital provides not only financial backing but also operational support to its portfolio firms.

Through its investments, IDG Capital seeks to foster companies that can redefine industry standards. With a focus on transformative technologies, IDG Capital's involvement in Opera is a testament to its belief in the company's innovative trajectory and potential for substantial market impact. The partnership aims to leverage both parties' strengths to further develop Opera’s capabilities and market reach.

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The investment in Opera by IDG Capital holds promise as a potentially strong investment opportunity. Opera's innovative features, particularly regarding its cryptocurrency wallet, position it well within a rapidly evolving digital landscape. The increasing integration of AI and content functionalities into its offerings also suggests a forward-thinking approach that is likely to resonate with users globally.

Moreover, Opera’s robust growth metrics, with a significant rise in active user numbers and revenue, hint at a sustainable growth trajectory. The expansion of its service offerings into content distribution and advertising adds further layers of revenue generation that can bolster future profitability.

Nonetheless, the competitive landscape and the constant need for technological innovation present challenges. Opera must consistently evolve its services to maintain a relevant edge in the tech ecosystem, especially against other major players. However, with IDG Capital's backing and strategic direction, Opera could very well navigate these challenges effectively.

Ultimately, if Opera continues to enhance user experience and capitalize on market trends, the investment is likely to yield positive returns, making it a solid choice for investors seeking exposure to the tech sector.

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