Google's $106.5 million takeover of On2 Technologies gets FTC approval

By Cristal Cody

Tupelo, Miss., Sept. 22 - The Federal Trade Commission gave early termination under the antitrust waiting period for Google Inc.'s all-stock acquisition of On2 Technologies Inc., according to a government release on Tuesday.

The $106.5 million stock deal, expected to close in the fourth quarter, also must be approved by On2 shareholders. The company has not scheduled a date for a stockholders meeting.

On2 faces two lawsuits filed over the company's buyout. Shareholders argue On2 directors breached their duties in the deal to sell the Clifton Park, N.Y.-based video compression software company.

Google and On2 announced the transaction on Aug. 5.

Under the terms, each share of On2 would be converted into 60 cents' worth of Google stock.

Mountain View, Calif.-based Google expects the acquisition to improve its online video quality.

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