Thursday, December 15, 2005

Google buys Opera

In another big GYM (Google, Yahoo, MSN) purchase, Google buys Opera. Two reasons for the purchase from MobHappy:

"First, when Opera changed their business model and made their PC browser free, it was because they started taking search referral payments from the likes of Amazon, eBay and... Google -- the biggest and most important contributor to Opera's revenues. So, in some sense, it's relatively cheap for Google to buy Opera when it saves referral payments.

The second, and biggest reason, again, is mobile. There's a benefit to controlling such a powerful technology on what's becoming such an important medium -- and mobile is only going to get more important. But keep in mind what are Opera's most significant relationships: deals to get its browser on handsets from some of the world's top mobile phone manufacturers. That would be instant traction for Google on some very big real estate."

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