Peter Kafka

Recent Posts by Peter Kafka

Sold! On2 Shareholders Agree to Get Googled, Finally. [UPDATE]

It took an awfully long time, and a $26 million sweetener. But the people who own On2 have finally allowed Google to buy the video compression company.

Google (GOOG) will end up paying $133 million for New York-based On2, a 20 percent bump above the price it announced it was paying way back in August. But a group of dissidents complained loudly enough and for long enough, apparently, to convince the search giant to pony up just a bit more.

When it did raise its price, Google announced that this was its last and final offer, which apparently convinced recalcitrant shareholders, who approved the deal today.

The deal brings Google’s acquisition tally to seven since August. That tally would have been eight had the folks at Yelp not turned down a $550 million offer in favor an injection of private equity money. But we’re almost certain to see more deals in this M&A spree.

UPDATE: Make that eight-plus. Google has “acqhired” Gabor Cselle, who founded email start-up reMail in 2008 and graduated from the Y Combinator hatchery in 2009. Cselle says Google will shut down reMail and remove the company’s app from Apple’s (AAPL) iTunes store.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work