Mountain View, Calif. -- February 19, 2010 -- Google Inc. (NASDAQ: GOOG) today announced that it has completed its acquisition of On2 Technologies, Inc., valued at approximately $124.6 million, after On2's shareholders voted to approve the transaction.
'We're excited to welcome the On2 team to Google and to continue to enhance the video experience for users on the web,' said Sundar Pichai, Vice President of Product Management at Google. 'Through rapid innovation in browsers and web standards, the Internet is becoming the leading platform for development. We believe On2's engineering talent and technology will be an incredible asset for us as we work to improve this platform.'
Under the terms of the agreement, each outstanding share of On2 common stock will be converted into the right to receive a combination of (a) $0.15 in cash per share, (b) 0.0010 of a share of Google Class A Common Stock and (c) cash payable in lieu of any fractional shares of Google Class A Common Stock.
Google intends to repurchase in the open market a number of shares equal to the number of shares issued in the transaction. The repurchase program is expected to commence shortly after the completion of the acquisition. The repurchases will be funded from available working capital.
About Google Inc.
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top Web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall Web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.