The longrunning $1.2 billion takeover of Norwegian browser outfit Opera by a Chinese consortium including app distribution platform Qihoo 360 and Kunlun Games has failed.

Sources say the key issue was user privacy and the likelihood that US regulators would "rigorously investigate the deal," a Kunlun spokeswoman told Reuters.

Smaller focus

However, a $600 million deal has been salvaged which will see Opera sell its core consumer products including its browser business, technology licensing outside of Opera TV, and its 29% ownership of Chinese joint venture nHorizon.

Opera Mediaworks (including mobile video ad outfit AdColony), Opera Apps & Games (including Bemobi), and Opera TV are not included in the deal.