Breaking: Google And On2 Technologies Revise Merger Agreement

January 7th, 2010

In August 2009, Google announced that it had agreed to acquire On2 Technologies for – then – roughly $106 million. At the end of last year, On2 – not for the first time – postponed a meeting at which it had hoped to get shareholder approval for its purchase by Google.

A new shareholder meeting was scheduled for February 2010, but this morning Google and On2 released a joint press release announcing their agreement to amend the merger agreement.

Under the revised terms, each outstanding share of On2 common stock will receive 0.0010 of a share of Google Class A Common Stock for each share of On2 common stock, as previously announced by On2 and Google, plus an additional $0.15 per share in cash consideration.

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, either party can terminate it.

(More coming)

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