Google ups offer for On2 Technologies

Google has increased its offer for On2 by $0.15 per share

Google has raised the sum it is offering to aquire On2 Technologies, a provider of video compression tools.

After a previous rebuttal, Google said today that it would increase its offer, adding that this would be the last one it makes.

Under the new terms, Google will up its offer by $0.15 per share, as well as handing over 0.0010 of a share of Google Class A Common Stock for each share of On2 common stock.

The firms added that this was a necessary adjustment since, in the months between today and the original offer in August last year, the value of Google stock had increased, while the web giant's offer had remained static.

On2 executives had felt this to be unfair, but seem to approve of Google's revised offer. A final decision will be made at a meeting in mid-February, but On2 has urged its shareholders to accept the offer as it stands.

"On2's board of directors approved the amendment to the merger agreement, and recommends that On2's stockholders approve the amended merger agreement and the merger proposal," the company said in a statement.

Google refused to be drawn on exactly how it would use the technology when it first announced the acquisition, which was originally valued at $106m (£66m), but is now worth around $134m.

"Although we are not in a position to discuss specific product plans until after the deal closes, we are committed to innovation in video quality on the web, and we believe that On2 Technologies's team and technology will help us further that goal," Google said at the time.