16
Aug
2009
On2 Technologies sued by Shareholders
by Nitin JainWe had reported a couple of weeks ago about Google’s acquisition of On2 Technologies. On2 had been patronizing Video Compression Technologies for use over the internet for quite some time. Well, here’s a twist to the case.
Apparently, some of the shareholders of On2 Technologies has sued On2 Technologies over the negotiated price that On2 has been sold for. On2 has apparently been sold for about 60 cents a share. It is said that in the beginning of 2008, On2′s shares were trading at more than a dollar per share. Thus, there is a substantial difference, and recession is being made an excuse.
It has in fact been alleged, that among other things, members of the company’s board of directors have breached their fiduciary duties to the shareholders.
Another point of focus is the bottom line improvements almost immediately after the Google deal. This has been a shot in the arm with shareholders claiming that this could potentially have helped garner a better deal with Google. Matt Frost, the interim CEO at On2, had claimed it was their strongest revenue performance in six quarters.
We had previously said that there can be issue which could possibly throw a spanner in the wheel, well, here it is!
However, we are also quite optimistic that Google with its providence and gut, will get past this one as well.
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