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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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik