[September 15, 2009] BRIEF: Google, On2 started talking in March Tweet Sep 15, 2009 (Albany Times Union - McClatchy-Tribune Information Services via COMTEX) -- Executives at On2 Technologies in Halfmoon began merger talks with Google Inc. back in March, according to shareholder materials filed recently with the Securities and Exchange Commission. Search engine giant Google agreed to purchase On2, which makes video compression software, back in August for $106.5 million in Google stock. The deal essentially values On2 shares at 60 cents. As it turns out, Google initially offered 45 cents to 50 cents, and On2 countered with a deal valued at between 80 cents and 90 cents per share. The common ground ended up being 60 cents per share. Google has used On2s software since 2005, and the two sides often talked. Between October 2008 and March, the two sides were talking about the licensing of On2s VP8 technology when the discussions turned to the possibility of Google acquiring the company. Many On2 shareholders are upset with the purchase price and have filed class action lawsuits against the company in both New York City and Delaware. A shareholder vote is expected to take place in the coming months. Read more and comment in The Buzz: Business blog. To see more of the Albany Times Union, or to subscribe to the newspaper, go to http://www.timesunion.com. Copyright (c) 2009, Albany Times Union, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]