CLIFTON PARK & MOUNTAIN VIEW, USA: On2 Technologies Inc. and Google Inc. jointly announced recently that they have entered into a definitive agreement under which Google will acquire On2, a leading developer of video compression technology.
Under the terms of the agreement, each outstanding share of On2 common stock will be converted into $0.60 worth of Google class A common stock in a stock-for-stock transaction. The transaction is valued at approximately $106.5 million.
"Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform," said Sundar Pichai, Vice President, Product Management, Google. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal."
"We're thrilled that On2 is joining one of the world's most innovative companies," said Matt Frost, interim CEO of On2. "After intensive review of On2 products, Google confirmed our long-held beliefs as to the quality of our video technologies. This transaction is a testament to the hard work of every On2 employee and the strongest possible endorsement of our products and people. On2 will continue to improve, support and sell our products throughout the transition.
"We believe that Google shares our ambitions and know that our products and expertise, combined with Google's globally recognized brand, ingenuity and resources, will create an incredible team."
The number of shares of Google class A common stock to be received by On2 stockholders will be determined by dividing $0.60 per share by the volume weighted average trading price of a share of Google class A common stock based on the sales price of every share of Google class A common stock traded during the twenty trading-day period ending on and including the second trading day prior to the date of the meeting of On2's stockholders to consider and vote on the merger agreement.
$0.60 per share represents a premium of approximately 57 percent over the closing price of On2's common stock on the last trading day immediately prior to the announcement of the transaction, and a premium of approximately 62 percent over the average closing price of On2's common stock for the six month period immediately prior to the announcement of the transaction.
The transaction, which is subject to On2 stockholder approval, regulatory clearances and other closing conditions, is expected to close in the fourth quarter of 2009.
Wilson Sonsini Goodrich & Rosati and Potter Anderson & Corroon served as legal counsel to Google, and Credit Suisse provided M&A advisory services to Google.
Covington Associates, LLC served as financial advisor to On2 and its board of directors and Duff & Phelps, LLC served as an independent financial advisor to On2's board of directors, and each of them provided an opinion as to the fairness, from a financial point of view, to the public stockholders of On2 of the exchange ratio in the proposed transaction. Hogan & Hartson LLP and Richards, Layton & Finger served as legal counsel to On2.
Showing posts with label Google. Show all posts
Showing posts with label Google. Show all posts
Thursday, August 13, 2009
Friday, July 10, 2009
Google Chrome OS needs to prove itself
Laurent Lachal, Open Source Director at Ovum
Google as Linux champion on netbooks
UK: Google generates most of its revenues from advertising, but intends to diversify its revenue streams with offerings such as Google Apps, which have just (surprise, surprise) come out of beta and whose momentum the new OS aims to boost (along with Google Mail and Google Docs usage) in one of the only markets that is still showing some health: netbooks.
In a recent report entitled Netbooks: a Linux appliance opportunity we identified two main sequential trends in the netbook market.
The first is a shrinking netbook/laptop divide, with the average netbook price shooting up to $400. After a strong start in this market segment, Linux is now increasingly being distanced by Windows, although its performance is still outstanding compared to its overall performance in the desktop market. Google Chrome OS could potentially enable it to regain some of its lost ground.
The second trend is a reaction to the first, a back-to-basics backlash with ambition to deliver netbooks that are not only cheaper ($200 on average) but also designed as appliances/mobile Internet devices (MIDs) rather than would-be laptops. In this market Google Android, which is also Linux-based, is making good progress.
In response, Microsoft needs not only to push Windows 7 forwards but also to boost its Windows Mobile offering.
The battle is on price as well as user experience
Either free (as many expect) or low cost, the new Google OS will challenge Microsoft’s ability to maintain profit margins. It will also challenge Windows from a user experience perspective, which is key to Linux-based netbook uptake.
The objective is for it to “start up […] in a few seconds”, to provide a “minimal” user interface that “stay[s] out of your way” and to be secure “so that users don't have to deal with viruses, malware and security updates”.
It could also be the starting point for a more integrated experience across Google applications/services and we expect it, like Android, to be linked to an online store of web applications not just to make it easier to consume these applications but also to prove that they can meet most needs.
Internet-centric but not dependent
Google dismisses OSs “designed in an era where there was no web.” The expectation behind its own OS is that “most of the user experience takes place on the Web”.
The key word here is ‘most’. With technologies such as Gears (that predates the Chrome browser and is embedded in it), and the Native Client plug-in and O3D API technologies that followed, Google is also working at enabling online applications to run offline. It needs to points this out more aggressively.
Keep things in perspective
The proof of the Google Chrome OS pudding will be in its eating. When the Google Chrome browser was released, in a report entitled Google enters the open source web browser fray we warned “don’t fall for the hype; Google Chrome still has everything to prove.” A few months later, despite Google claiming 30 million regular users, the browser has not made much impact.
Similarly, we do not expect Google Chrome OS to take over the world -– it is a bit late for that. With Windows 7 about to ship, it would have been better for Google to release, rather than simply announce, an alternative for the netbook market.
Key to Google’s OS success will be its ability to create a strong community around it. This is going to be difficult. A rethink of the project based on an alliance/convergence effort with the Ubuntu community could help.
Google as Linux champion on netbooks
UK: Google generates most of its revenues from advertising, but intends to diversify its revenue streams with offerings such as Google Apps, which have just (surprise, surprise) come out of beta and whose momentum the new OS aims to boost (along with Google Mail and Google Docs usage) in one of the only markets that is still showing some health: netbooks.
In a recent report entitled Netbooks: a Linux appliance opportunity we identified two main sequential trends in the netbook market.
The first is a shrinking netbook/laptop divide, with the average netbook price shooting up to $400. After a strong start in this market segment, Linux is now increasingly being distanced by Windows, although its performance is still outstanding compared to its overall performance in the desktop market. Google Chrome OS could potentially enable it to regain some of its lost ground.
The second trend is a reaction to the first, a back-to-basics backlash with ambition to deliver netbooks that are not only cheaper ($200 on average) but also designed as appliances/mobile Internet devices (MIDs) rather than would-be laptops. In this market Google Android, which is also Linux-based, is making good progress.
In response, Microsoft needs not only to push Windows 7 forwards but also to boost its Windows Mobile offering.
The battle is on price as well as user experience
Either free (as many expect) or low cost, the new Google OS will challenge Microsoft’s ability to maintain profit margins. It will also challenge Windows from a user experience perspective, which is key to Linux-based netbook uptake.
The objective is for it to “start up […] in a few seconds”, to provide a “minimal” user interface that “stay[s] out of your way” and to be secure “so that users don't have to deal with viruses, malware and security updates”.
It could also be the starting point for a more integrated experience across Google applications/services and we expect it, like Android, to be linked to an online store of web applications not just to make it easier to consume these applications but also to prove that they can meet most needs.
Internet-centric but not dependent
Google dismisses OSs “designed in an era where there was no web.” The expectation behind its own OS is that “most of the user experience takes place on the Web”.
The key word here is ‘most’. With technologies such as Gears (that predates the Chrome browser and is embedded in it), and the Native Client plug-in and O3D API technologies that followed, Google is also working at enabling online applications to run offline. It needs to points this out more aggressively.
Keep things in perspective
The proof of the Google Chrome OS pudding will be in its eating. When the Google Chrome browser was released, in a report entitled Google enters the open source web browser fray we warned “don’t fall for the hype; Google Chrome still has everything to prove.” A few months later, despite Google claiming 30 million regular users, the browser has not made much impact.
Similarly, we do not expect Google Chrome OS to take over the world -– it is a bit late for that. With Windows 7 about to ship, it would have been better for Google to release, rather than simply announce, an alternative for the netbook market.
Key to Google’s OS success will be its ability to create a strong community around it. This is going to be difficult. A rethink of the project based on an alliance/convergence effort with the Ubuntu community could help.
Wednesday, May 20, 2009
E-paper market to soar to $2.1 billion by 2015: Displaybank
BUNDANG, SOUTH KOREA: Displaybank projects the e-Paper market to grow from $70 million in 2008 to $2.1 billion in 2015 and $7 billion by 2020 -- representing a CAGR of approximately 47 percent.
Displaybank also projects the e-Book market to comprise 50 percent of the total e-Paper market during that same period -- growing from $35 million in 2008 to $1.1 billion in 2015 and $3.4 billion by 2020 -- with the greatest regional demand coming from the US. These and other findings are disclosed in Displaybank's newly published e-Paper Display Technology and Market Forecast Report, which is the first report of its kind focusing on the e-Paper market in comprehensive detail.
Peter Kwon, Displaybank CEO noted: "It's nice to see that despite the current economic environment, certain technology applications are still gaining strong traction with consumers now, as well as present significant growth prospects in the coming years. The e-Paper market is a clear example of this, with e-Books representing a key 'killer application' that will take the merging of information and mobility to new heights. Being at the forefront of the display industry gives Displaybank a unique perspective on the exciting developments underway in the e-Paper market, and we look forward to seeing the continuing emergence of new technologies and applications to support this market."
According to Displaybank, Amazon currently leads in the e-Book market based on the abundant content that it offers. The growth of the e-Book market depends on not only the specifications of the reading device, but also on the available content and service offerings. As a result, Displaybank predicts that Sony's recently announced partnership with Google, the world's largest digital content provider, will propel Sony back into the e-Book market and allow it to serve as a formidable challenger to Amazon.
In addition to the e-Book market, Displaybank foresees myriad applications for e-Paper display technology due to its flexibility, ability to process electronic information and low power consumption. These include mobile displays, public displays such as electronic billboards and advertisements, as well as smart cards, Electronic Shelf Label (ESL) and Point of Purchase (POP) applications.
Improvements in e-Paper display technology such as contrast ratio, color display and durability will be needed to support these and other future applications. For example, larger-scale information displays will require improved precision in color display, while outdoor displays will need improved durability against heat and impact.
e-Paper displays using glass substrates are currently mass produced by Taiwan-based PVI and Korea-based LG Display. According to Displaybank, the first maker to utilize flexible substrate in e-Paper display is expected to be LG Display. LG Display is currently developing amorphous silicon thin-film transistor (TFT) technology-based flexible e-Paper displays using a metal foil substrate in co-operation with E-ink. During the second half of 2009, Displaybank predicts that 11.5-inch flexible e-Paper displays will enter the market in mass production.
The strength of Displaybank's new report is in its detailed analysis of the myriad e-Paper technology currently available along with regional R&D, technology and application trends. In addition, the report covers the necessary steps needed for performance enhancement through technology development and development factors, as well as product delivery forecasts. Coupled with a comprehensive forecast for both replacement and newly created markets, this report truly covers all aspects of e-Paper display technology, unlike any other.
Displaybank also projects the e-Book market to comprise 50 percent of the total e-Paper market during that same period -- growing from $35 million in 2008 to $1.1 billion in 2015 and $3.4 billion by 2020 -- with the greatest regional demand coming from the US. These and other findings are disclosed in Displaybank's newly published e-Paper Display Technology and Market Forecast Report, which is the first report of its kind focusing on the e-Paper market in comprehensive detail.
Peter Kwon, Displaybank CEO noted: "It's nice to see that despite the current economic environment, certain technology applications are still gaining strong traction with consumers now, as well as present significant growth prospects in the coming years. The e-Paper market is a clear example of this, with e-Books representing a key 'killer application' that will take the merging of information and mobility to new heights. Being at the forefront of the display industry gives Displaybank a unique perspective on the exciting developments underway in the e-Paper market, and we look forward to seeing the continuing emergence of new technologies and applications to support this market."
According to Displaybank, Amazon currently leads in the e-Book market based on the abundant content that it offers. The growth of the e-Book market depends on not only the specifications of the reading device, but also on the available content and service offerings. As a result, Displaybank predicts that Sony's recently announced partnership with Google, the world's largest digital content provider, will propel Sony back into the e-Book market and allow it to serve as a formidable challenger to Amazon.
In addition to the e-Book market, Displaybank foresees myriad applications for e-Paper display technology due to its flexibility, ability to process electronic information and low power consumption. These include mobile displays, public displays such as electronic billboards and advertisements, as well as smart cards, Electronic Shelf Label (ESL) and Point of Purchase (POP) applications.
Improvements in e-Paper display technology such as contrast ratio, color display and durability will be needed to support these and other future applications. For example, larger-scale information displays will require improved precision in color display, while outdoor displays will need improved durability against heat and impact.
e-Paper displays using glass substrates are currently mass produced by Taiwan-based PVI and Korea-based LG Display. According to Displaybank, the first maker to utilize flexible substrate in e-Paper display is expected to be LG Display. LG Display is currently developing amorphous silicon thin-film transistor (TFT) technology-based flexible e-Paper displays using a metal foil substrate in co-operation with E-ink. During the second half of 2009, Displaybank predicts that 11.5-inch flexible e-Paper displays will enter the market in mass production.
The strength of Displaybank's new report is in its detailed analysis of the myriad e-Paper technology currently available along with regional R&D, technology and application trends. In addition, the report covers the necessary steps needed for performance enhancement through technology development and development factors, as well as product delivery forecasts. Coupled with a comprehensive forecast for both replacement and newly created markets, this report truly covers all aspects of e-Paper display technology, unlike any other.
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