It's a dog-eat-dog world in the mobile browser arena as Opera has announced a deal to gobble up Skyfire Labs for $155 million in cash and stock. It doesn't mean though that Skyfire's vanishing into oblivion as its browser will continue to be supported and Skyfire CEO Jeffrey Glueck will become an executive VP at Opera and will remain as CEO of Skyfire as an independent but wholly-owned unit of Opera. The deal to acquire Skyfire, which is also a video-optimization and smartphone monetization products provider, is expected to close mid-March.
What Else You Need To Know
The deal calls for Silicon Valley-based Skyfire to get an upfront $50 million payment with performance-based earn-out payments over three years.
Opera and Skyfire will be at the MWC in Barcelona at the end of the month to convey to mobile operators plans of the combined companies.
Although Skyfire is best known for the Flash-compatible Skyfire web browser for iOS and Android, the acquisition is primarily for the company's Rocket Optimizer -- software that reduces the size of streaming video when it's being transmitted over congested mobile networks.
If you're still using Skyfire don't expect it to go away anytime soon, as the two indicate its browser will continue to be developed and supported.
- Richard Lawler, Engadget