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Google improves On2 offer to $134m
08 January 2010
Google has boosted its offer for video compression specialist On2 by 20% to $134 million
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Google
YouTube
On2
video
compression
Adobe
Apple
Intel
Samsung
Comment: Through YouTube and other operations Google wants to be the main source of video distribution and as high-definition movies and TV become popular the company needs better compression technology. On2 could provide Google with a way to squeeze more video into the internet.
Google has sweetened its bid for On2 Technologies by 20% to $134 million. The shareholders of the video compression technology company, according to the altered deal, will get 0.0010 of a share of Google’s Class A common stock for each share of On2 common stock and an additional 15 cents in cash per share.
The new offer is about $26.5 million more than Google’s previous bid. The proposed offer price was revamped to indicate a significant rise in the search engine’s stock price. Google says it does not seek to alter the offer any further.
Google — which owns the YouTube video distribution operation — is seeking to purchase On2 to back its efforts to promote the spread of internet video. The shareholders of On2 had opposed the deal as they were not happy with the price and terms.
On2’s technology reduces the size of video files, making it easier to send them over the internet. Customers include Adobe, Apple, Intel, Samsung, video-on-demand specialist Seachange and Skype. GTB