Web browser developer Opera paid $30m for a stake in US-based, music-focused social media platform StarMaker Interactive yesterday that is sized at approximately 19.4%.
The transcation valued StarMaker at $125m pre-money and gives Opera the option to increase its shareholding to 51% in the second half of 2020.
Founded in 2010, StarMaker operates a mobile app that enables users to record and share karaoke videos, covers of existing songs and their own videos. The app includes a large selection of voice effects and also lets musicians collaborate with each other.
The strategic partnership with Opera will enable the companies to leverage each other’s brands to accelerate their respective growth. StarMaker is particularly active in India, Indonesia and the Middle East.
Yahui Zhou, CEO and chairman of Opera, acquired a majority stake StarMaker in 2016 in a personal capacity and currently owns a 65.8% stake.
Social media company Gree and Qualcomm Ventures, the corporate venturing subsidiary of mobile semiconductor producer Qualcomm, contributed to a $6.5m series B round for the company in 2015 that was led by merchant bank Raine Group’s venture capital unit, Raine Ventures.
The series B round also included Crosscut Ventures, Three Bridges Ventures and iGlobe Partners, as well as angel investors Allen DeBevoise and Joe Perez. It came after a $4m series A featuring Qualcomm Ventures and iGlobe Partners in 2013.
Frode Jacobsen, chief financial officer of Opera, said: “We are excited to invest in StarMaker, as they are one of the leading music-oriented social media platforms in emerging markets.
“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.”
