Shareholders challenge Google deal to buy On2 Google’s deal to buy video compression software company On2 Technologies is being challenged in court by On2’s shareholders who are dissatisfied with the $106.5 million price and the terms of the deal. Google declined to comment on the suit, filed in Delaware Chancery Court on Monday and seeking class action status, as well as a permanent injunction blocking the deal. The suit also called on the defendants to account for all damages caused, said Reuters. The move comes a week after Google announced the deal — the first acquisition of a public company in its history. The deal would give Google access to relevant technology as it seeks to reduce the cost of operating its YouTube video site and to foster the spread of video on the Internet. Google’s offer of 60 cents a share represents a 57 percent premium from the closing price of On2’s stock on the last trading day before the announcement. According to the suit, however, the price is well below the level where On2’s stock traded in the few months prior to the proposed transaction.
Google Faces Shareholder Challenge Over On2
Shareholders have filed suit against Google, being unsatisfied with the $106.5 million price and terms of the deal.
August 13, 2009