Google Faces Suit Over On2 Purchase
Google Inc.’s (GOOG) acquisition of video compression software maker On2 Technologies Inc. has been challenged in court by On2 shareholders who claim the deal’s $106.5 million price tag is “unfair.”
The complaint, filed in Delaware Court of Chancery on Monday, seeks class action status and a permanent injunction blocking the deal. The plaintiffs also demand that the defendants, which include On2′s board as well as Google, account for all damages caused.
Google declined to comment on the complaint. On2, which produces software that makes high-definition video playback possible on mobile devices, wasn’t available for comment.
Under the terms of the deal, each On2 share will be converted into 60 cents in Google stock–a 57 percent premium over the closing price for On2′s shares the day before the deal was announced.