Posted at: 08/13/2009 4:04 PM
By: AP

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On2 vows to fight challenges to Google acquisition

DOVER, Del. (AP) - Video software firm On2 Technologies says it will fight legal challenges to its planned acquisition by Google Inc.

The Saratoga County-based company agreed last week to a takeover by Mountain View, Calif.-based Google in a deal valued at about $106 million, with shareholders receiving 60 cents worth of Google shares for each share of On2 stock.

But On2 shareholders filed separate lawsuits in Delaware and New York seeking class-action status this week. They claim On2 directors agreed to a deal that undervalues their shares and doesn't give them a significant premium in return for the change in control.

On2 makes digital video compression technology that could give Google a way to cut costs for its popular video-sharing site YouTube, by shrinking files so they can be sent more easily.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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