Google Acquires Video Compression Technology Company On2 For $106 Million

05
Aug

Google Acquires Video Compression Technology Company On2 For $106 Million

author: editor category: TechCrunch

Google and On2 jointly announced today that they have entered into a definitive agreement under which Google will acquire On2, a developer of video compression technology. The acquisition is expected to close later this year.

Under the terms of the agreement, each outstanding share of On2 common stock will be converted into $0.60 worth of Google class A common stock in a stock-for-stock transaction. The transaction is valued at approximately $106.5 million.

According to the release, $0.60 per share represents a premium of approximately 57% over the closing price of On2’s common stock on the last trading day immediately prior to the announcement of the transaction, and a premium of approximately 62% over the average closing price of On2’s common stock for the six month period immediately prior to the announcement of the transaction.

The agreement is subject to On2 stockholder approval, regulatory clearances and other closing conditions.

Google is reluctant to dive into specific regarding the specific product plans until after the deal closes. In a blog post, the company says:

“Although we’re not in a position to discuss specific product plans until after the deal closes, we are committed to innovation in video quality on the web, and we believe that On2 Technologies’ team and technology will help us further that goal.

We’ll update everybody when we’re able to share more information. In the meantime, nothing will change for On2 Technologies’ current and prospective customers.”

(news breaking, updates on the way)

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