Feeds

Google tosses extra $27.5m on pile to buy On2 Technologies

Mountain View wallet expands to compress video

Securing Web Applications Made Simple and Scalable

Google sprinkled some much needed sugar over its bid to take over On2 Technologies today by agreeing to pony up $134m, after On2 shareholders grumbled that they were getting a raw deal from last August's original $106.5m offer.

“Under the revised terms, each outstanding share of On2 common stock will receive 0.0010 of a share of Google Class A Common Stock for each share of On2 common stock, as previously announced by On2 and Google, plus an additional $0.15 per share in cash consideration,” said On2 Technologies in a statement.

Google announced plans to buy the video software maker in August last year. Not long after that, some On2 investors mounted legal challenges against the firm, in which they opposed the world's largest ad broker’s proposed takeover.

At the time, several shareholders claimed the deal undervalued On2's regular investors, while benefiting the Clifton Park, New Jersey-based outfit’s execs, board members and staff.

By late October 2009, On2 bosses said they had settled the internal legal dingdong, but didn’t reveal what financial terms had been agreed.

Google’s buyout of On2 was expected to complete by the end of last year.

“The revisions to the terms of the merger agreement serve, in part, to address the fact that, since the acquisition was first announced in August 2009, the market value of Google's Class A Common Stock has increased significantly while the value of the acquisition has remained fixed for On2's stockholders,” acknowledged On2 today.

“By increasing the consideration offered to On2's stockholders by an additional $0.15 per share in cash, On2's stockholders will receive additional value for their On2 common stock that Google and On2 believe better reflects the value that On2's stockholders would have received had the acquisition closed closer to the time of its announcement in August 2009.”

Google said that the jacked up $134m bid constituted the firm’s final offer to buy the video compression tech outfit. ®

Build a business case: developing custom apps

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.