On 5th of Nov Opera Limited which is one of the leading internet browser provider announced that it has completed its $30 million investment in starmaker an entertainment company, StarMaker is said to be a fast-growing music-oriented social media platform.
Opera said this on its blog post:
“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 take 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 prior to the approval of this transaction.
StarMaker enables users to record and share their own music videos, collaborate with other musicians, connect with other users and follow their idols on the social platform. The company has a strong and engaged user base in emerging markets such as India, Indonesia and the Middle East.
In addition, Opera and StarMaker’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and any business outlook section contain forward-looking statements.