Google Acquires On2
Google (Nasdaq: GOOG) announced today that it has reached an agreement to acquire video compression and encoding specialist On2 Technologies in an all-stock transaction worth $106.5 million.
As part of the deal, Google is offering 60 cents worth of Google stock for each outstanding share of On2, representing a 57 percent increase over yesterday's closing price. (At Google's current stock price of about $450 per share, that means shareholders will receive 0.0013 shares of GOOG stock for each share of On2.)
While the acquisition is of course subject to On2 shareholder approval, regulatory review, and all that mumbo jumbo, Google expects the deal to close in the fourth quarter.
So what does Google get when the deal closes?
To find out, see the full story at Contentinople. — Ryan Lawler, Contentinople