Opera Software announced Friday, Feb. 15 that it purchased Skyfire Labs, the makers of the Flash-capable Skyfire mobile Web browser.
The entire deal price is a combination of cash and stock totaling about $155 million. Skyfire developed and introduced Rocket Optimizer, a feature that allows service providers to offer smoother network data by optimizing multimedia files.
The providers' bandwidth is increased by 60 percent across the network using Skyfire's Rocket Optimizer. Videos and large images are cached using cloud in a way that reduces the amount of servers required in the data center. Skyfire has the ability to pinpoint trouble and fix it when users are facing poor quality streams or bad connections. This helps reduce user frustrations by cutting start times, minimizing buffering and stalls on audio and video streams. Skyfire is currently working with three major U.S. mobile carriers, providing them with Rocket Optimizer.
"Opera and Skyfire are a natural fit," says Opera Software CEO Lars Boilesen in a press release. "Skyfire adds capabilities to our portfolio around video, app optimization, smartphones and tablets, and strength in North America. With video expected to consume over two-thirds of global mobile bandwidth by 2015, and as time spent on Android and iOS apps explodes, we are excited to extend Opera's solutions for operators."
"Both companies have evolved far beyond their browser roots. Opera practically invented cloud compression to improve mobile user experience, and the team at Skyfire is proud to join forces and advance cloud solutions together," said Jeffrey Glueck, CEO of Skyfire.
Glueck will remain the CEO of Skyfire, but will also take on the role of EVP of the Operator Business for Opera. Skyfire will be a wholly-owned subsidiary of Opera, with development and support of the Skyfire browser said to continue. Combining talents, skills and ideas, the partnership between the two companies is expected to lead to the development of powerful new products this year.
"The market opportunity for video/media optimization solutions geared towards operators and consumers is significant. After a thorough evaluation of this market, we strongly believe Skyfire is the clear leader for the future in this space," said Erik Harrell, CFO/CSO of Opera.
