New book by Larry Connors Click here Improve your trading - See how
On2, which makes cutting-edge video compression software, had been in discussions with Google for months about licensing its software to the Mountain View, Calif., company or entering into a joint development agreement, according to details of the deal filed last Friday with the U.S. Securities and Exchange Commission.
It was on March 6 that Google executives first broached the idea of the sale, terms of which have angered many On2 shareholders who believe they aren't getting enough from Google in the deal, which values On2's shares at 60 cents each.
But the SEC filing reveals that Google first proposed much less than that -- between 45 and 50 cents per share.
And as negotiations progressed, On2 board members sought as much as 90 cents a share from Google,which would have valued the deal at about $160 million.
Google provided the On2 board with a written offer of 60 cents cash per share on May 20, and five days later the board countered with an offer of 65 cents -- to be paid in Google stock.
Google wouldn't budge, although on June 5 it revised its offer, saying the 60 cents per share could be payable in either cash or Google stock. The final decision was to use Google stock, although fractional shares are paid in cash.
On Aug. 4, the day before the deal was announced, On2 shares traded at 38 cents; Google's offer is a premium of 57 percent.
The deal also includes a $2 million termination fee if On2's board decides to back out of the deal.
Since last month's announcement, five shareholder lawsuits have been filed in New York and Delaware seeking to stop the deal.
Google's filing last Friday with the SEC is a preliminary proxy statement that will eventually be sent out to On2 shareholders asking them to vote on the merger.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
To see more of the Albany Times Union, or to subscribe to the newspaper, go to http://www.timesunion.com. Copyright (c) 2009, Albany Times Union, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
