On2 Investors File Suit to Block Google Acquisition

Authored by Mark Hefflinger on August 12, 2009 - 8:14pm.

New York - Investors in On2, the video encoding firm Google (NASD: GOOG) announced it would acquire for $106.5 million, have filed lawsuits in New York and Delaware seeking to block the deal, saying it undervalues the company, the New York Post reported.

The suits also allege the deal benefits On2's management, board and employees more than investors, and that it is prejudiced against competing bids.

An On2 shareholder vote on the deal, required for approval, has yet to be scheduled.

In addition to asking a court to block the deal, the investor suits are also seeking damages.

Related Links:
http://snipurl.com/psa4u (New York Post)

http://snipurl.com/psah4 (DMW previous coverage)

http://www.on2.com