Last week news broke by Pocket-lint that social giant keen to buy Opera Software. Soon after the news comes into the market, Opera’s shares hiked by more than 20 percent on Tuesday, while analysts believe that the company will comes at a price tag of over $1 billion.
The increase of over 26 percent share, valued the company at over $800 million, so price of over $1 billion will be a part of fairer deal. Analysts said, 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.
Arctic Securities said, “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.”