Google Acquiring On2 Technologies (GOOG,ONT)
Wednesday, August 05, 2009 10:36ET
Aug 05, 2009 (SmarTrend(R) News Watch via COMTEX) -- 8/5/2009 - On2 Technologies, Inc. (AMEX:ONT) and Google Inc. (NASDAQ:GOOG) announced Wednesday that they have entered an agreement under which Google will acquire On2. Under the terms of the agreement, each outstanding share of On2 common stock will be converted to 60 cents worth of Google class A common stock in a stock-for-stock transaction, representing a 57% premium over On2's last close. The total transaction is valued at about $106.5 million. Vice president of Product Management with Google, Sundar Pichai, said, "Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform. We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal." Interim CEO of On2, Matt Frost, said, "We're thrilled that On2 is joining one of the world's most innovative companies. After intensive review of On2 products, Google confirmed our long-held beliefs as to the quality of our video technologies. This transaction is a testament to the hard work of every On2 employee and the strongest possible endorsement of our products and people. On2 will continue to improve, support and sell our products throughout the transition. We believe that Google shares our ambitions and know that our products and expertise, combined with Google's globally recognized brand, ingenuity and resources, will create an incredible team." The transaction is expected to close in Q4 2009 and is subject to On2 shareholder approval.
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