Google sweetens bid for On2 Technologies to $132 million
08 Jan 2010
Google Inc, the search technology giant yesterday sweetened its bid for video compression technology firm On2 Technologies Inc.by approximately $132 million from its August 2009 takeover offer of $106.5 million.
Giving in to pressure from On2 shareholders, the Mountain View-based company will now give $0.15 per share in cash along with its previously announced share swap ratio of 0.0010 Google class A common stock for each outstanding On2 common stock.
Google said that since the acquisition was first announced in August 2009, (See: Google to acquire video firm On2 for $106.5 million) the market value of Google's Class A Common Stock has increased significantly while the value of the acquisition has remained unchanged for On2's stockholders.
Google and On2 said in a statement that by increasing the consideration to On2's stockholders by an additional $0.15 per share, On2's stockholders will receive additional value for their On2 common stock that 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 and On2 had initially said they expected the merger to be completed by the fourth quarter of 2009. If the deal is not completed by March 31 2010, either party can terminate it.
Google had said last month that it had failed to collect enough shareholder support to close the acquisition.
