Opera Buys Up AdColony to Build Mobile Advertising Business
Several days ago Opera, the Oslo-based web browser company, announced its acquisition of AdColony with a total package of $350 million. Both sides kept the negotiations close to the chest until the final details have been agreed upon – the deal closes on the third quarter of this year. AdColony now states that the deal is “100% strategic”, another merger that confirms the fact that Opera is in the process of consolidating its business in the market.
According to Opera Software CEO Lars Boilesen, their company is growing at a rapid pace and AdColony will serve to enhance its mobile advertising arm. AdColony is one of the better start ups in mobile video ads. Its clientele are Fortune 500 brands, performance advertisers and over 70% of the most profitable app companies. This is a very powerful addition to Opera’s bases business with web browsers for PCs, mobile phones and television. In the past four years, Opera has gone on a buying binge, and AdColony (along with AdMarvel and German start up apprupt) brings the company’s total acquisitions to eight. It has a large share in the Scandinavian and Eastern European web browser markets, and has made inroads in the US, China and South Korea.
Opera delivers content to about 350 million interactive consumers, therefore one of the obvious motives for merging with AdColony is the monetization of ads in its consumer base. From the technology standpoint, Opera’s compression algorithms gives its clientele an edge in pricing (very reasonable) while delivering faster downloads that use less data.
AdColony will further enhance Opera’s mobile network with crystal-clear high definition videos with minimal lag time, and its ad technology serves video ads on the most current apps in the iOS and Android platforms. This specialization is well-suited with Opera’s main selling points. No doubt, the merger will raise mobile Internet standards to a newer peak, possibly one of the best online video experiences on mobile networks – one with most advanced formatting that will command better earnings.
This is very good news for publishers and advertisers, the AdColony addition will make Opera the world’s biggest mobile ad server with new, powerful ways of efficient monetization that is predicated on a much more extensive and deeper audience engagement. When the Opera’s new operations are running, advertisers will have access to the most balanced, comprehensive ad solutions for mobile.