Opera's buy back program

  • Hi.
    I just read about it on the Opera site.
    Well, i was just curious what it's about. What's the deal with this buy back thing?

    Regards.

  • Never heard of it, could you please give a link to the post?

  • Hmm, do you mean the buyback of own shares that the other Opera is doing?

    Maybe it's closing its capital?

  • This is the latest update, from April 12th - http://www.newsweb.no/newsweb/search.do?messageId=424868

  • This is the latest update, from April 12th - http://www.newsweb.no/newsweb/search.do?messageId=424868

    This is Opera ASA - the part of old Opera that was not bought by the chineses - buying its shares back from shareholders as it seems.

  • So the chinese has bought what of Opera? And is it from them Opera ASA are buying back from?

  • So the chinese has bought what of Opera?

    The part of Opera that makes the browsers, called now 'Opera Software AS' as you can see in your address bar if you are using Opera for desktops.

    'Opera Software ASA' kept the rest of Opera's bussiness like Surfeasy, Ad Colony and so on.

    And is it from them Opera ASA are buying back from?

    Nope, from its current shareholders. They couldn't be buying from Chineses since 'Opera Software AS' doesn't have shares on stock exchange.

  • Regardless of who owns what part of Opera ASA, stock buybacks are occasionally used by certain publicly-traded companies to reduce the number of outstanding corporate stock shares in the public trading marketplace. The company uses its own revenues to enter that marketplace to buy back a certain number of shares; sometimes it then 'retires' those shares, which acts to increase the voting and dividend leverage of each remaining share of stock. It's kind of the reverse of the more common technique of raising new investor revenue via share dilution achieved through creating and selling new stock shares into the marketplace, which acts to dilute the voting leverage and dividend potential of each previously-existing share of stock.

    In the ultimate scenario, a company can buy back enough shares to gain full control of its own stock in order to delist it (take it out of public trading into a privately-held status). However, much of the time, the stock buyback strategy will be employed for other corporate or investor financial reasons. Depending on the investment school of thought one follows, stock buybacks can be either a wise or unwise use of a company's financial resources.

  • Okay, so if i get it right -

    Opera Software AS owns and operates the browser 'Opera'.
    The Chinese Investors owns SurfEasy (the VPN), AD Colony and so on.

    • but the stock thing, i don't understand.
  • Opera Software AS owns and operates the browser 'Opera'.
    The Chinese Investors owns SurfEasy (the VPN), AD Colony and so on.

    Exactly the opposite. because of the acquisition, Opera Software ASA was split in two: Opera Software AS and another one that kept the Opera Software ASA name.

    Opera Software AS is owned by the Chinese group and is responsible for the browsers. Opera Software ASA is what remains from old Opera Software and runs Surfeasy and so on.

    but the stock thing, i don't understand.

    I guess there's nothing much to understand, they are just buying there own shares.

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