Opera Limited (Nasdaq: OPRA), one of the world’s leading browser providers and an influential player in the field of integrated AI-driven digital content discovery and recommendation platforms, today announced that it had completed a strategic investment in StarMaker Inc., a fast-growing technology-driven social media company focused on music and entertainment.
StarMaker enables users to record and share their music videos, collaborate with other musicians, connect with other users and follow their idols on the social platform. The company has an active and engaged user base in emerging markets such as India, Indonesia, and the Middle East.
“We are excited to invest in StarMaker, as they are one of the leading music-oriented social media platforms in emerging markets,” says Frode Jacobsen, CFO of Opera. “StarMaker complements our existing content platform Opera News, and we look forward to taking part in the company’s journey of both continued product innovation and user growth.”
Opera’s strategic investment in StarMaker will lay the foundation for opportunities for the two companies to leverage each other’s strong brands and unique products to accelerate growth and to capture shared opportunities.
Opera has invested US$30 million at a US$125 million pre-money valuation by purchasing preferred shares issued by StarMaker, resulting in an ownership stake of 19.35%. As part of the investment, Opera also obtained an option to increase its ownership to 51% in the second half of the year 2020.
Following this investment, Mr. Yahui Zhou, chairman of Opera’s Board of Directors and its CEO, will continue to hold 65.78% of the outstanding equity interests in StarMaker. Opera’s Board of Directors obtained a valuation analysis from an independent third-party investment bank before the approval of this transaction.
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