Google to Acquire On2 Technologies
Search engine, Google, together with On2 Technologies, Inc, have jointly said they have entered into a conclusive agreement in which Google will get the developer of video compression technology. Under the terms of the accord, each superb share of On2 common stock will be changed into $0.60 worth of Google class a standard stock in a stock-for-stock exchange. The exchange is priced at roughly $106.5 million.
Sundar Pichai, Vice President, Product Management, Google remarked, ”Today video is an essential part of the web experience, and we think top quality video compression technology should be part of the web platform.
We have a commitment to invention in video quality on the internet, and we think that On2’s team and technology will help us further that goal. Matt Frost, interim Manager of On2 added, ”We’re excited that On2 is joining one of the world’s most inventive corporations.
After in depth review of On2 products, Google confirmed our long-held ideology as to the standard of our video technologies. This exchange is a tribute to the difficult work of each On2 worker and the strongest possible endorsement of our products and folk. On2 will continue to enhance, support and sell our products across the transition. We suspect that Google shares our ambitions and know that our products and experience, combined with Google’s worldwide recognized brand, ingenuity and resources, will create a superb team.
The amount of shares of Google class a standard stock to be received by On2 backers will be decided by dividing $0.60 per share by the volume weighted average trading cost of a share of Google class a standard stock based on the sales cost of each share of Google class a standard stock traded in the 20 trading-day period ending on and including the second trading day previous to the date of the meeting of On2’s backers to think about and vote on the amalgamation agreement. $0.60 per share represents a premium of roughly 57% over the final price of On2’s common stock on the last trading day right before to the statement of the exchange, and a premium of approximately 62% over the average final price of On2’s common stock for the 6 month period right before to the statement of the exchange. The exchange, which is subject to On2 stockholder approval, regulatory clearances and other closing conditions, is expected to close in the 4th quarter of 2009. Wilson Sonsini Goodrich and Rosati and Potter Anderson and Corroon served as legal advocate to Google, and Credit Suisse provided M and An advice services to Google.
Covington Associates, LLC served as monetary counsellor to On2 and its board and Duff and Phelps, LLC served as an independent money aide to On2’s board, and each one of them provided an opinion as to the fairness, from a money viewpoint, to the general public investors of On2 of the exchange proportion in the suggested exchange.
Hogan & Hartson LLP and Richards, Layton and Finger served as legal suggest to On2. On2 creates complicated video compression technologies that power the video in today’s leading desktop and mobile applications and devices.
With the largest index of websites available on the World Wide Web and the industry’s most advanced search technology, Google Inc. delivers the fastest and easiest way to find relevant information on the Internet. Google’s technological innovations have earned the company numerous industry awards and citations, including two Webby Awards; two WIRED magazine Readers Raves Awards; Best Internet Innovation and Technical Excellence Award from PC Magazine; Best Search Engine on the Internet from Yahoo! Internet Life; Top Ten Best Cybertech from TIME magazine; and Editor’s Pick from CNET. A growing number of companies worldwide, including Yahoo! and its international properties, Sony Corporation and its global affiliates, AOL/Netscape, and Cisco Systems, rely on Google to power search on their websites. A privately held company based in Mountain View, Calif., Google’s investors include Kleiner Perkins Caufield Byers and Sequoia Capital.
To learn more about On2 Technologies, please visit: www.on2.com.
For more information Google, please visit: www.google.com.
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