Determining the value of hardware companies is quite trivial when compared to software companies, primarily because most software companies haven’t even started making money. They don’t have a monetization strategy.
But it is the potential for monetization that draws investors, and often investors put in money in a product just to find out that its monetization path isn’t really that effective. Software companies are being valued in the billions, making them unicorns, but their revenue is not helping them to break even.
Which is why it is a bit perplexing that Opera, the least popular web-browser by market-share has received buyout offers that value it for around $1.2 billion. These offers are coming from a consortium of Chinese online companies. And Opera has announced that its board has accepted the offer.
Opera may not have the market-share, but it certainly is the more innovative browser out there, having introduced tabbed-browsing, torrent-downloading within browsers and more.
What do you think?