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On2 Technologies, the listed, New York-based video compression software developer, is a potential takeout target for larger software companies, according to a source familiar with the firm and an insider.
Adobe, the listed California-based software company, and AOL the listed Virginia-based internet company, Skype Technologies, the UK-based company owned by California-based eBay, could all take out On2, a source familiar with the company said.
An Adobe takeover of On2 has been speculation for some time, the insider said. “We do from time to time hear from third parties that a company is interested in On2,” the insider added.
On2 has USD 60m in stock it will use for investing and acquiring, the insider said prior to the company’s 21 May announcement that it bought Finland-based Hantro Products Oy, a market-leading provider of video technology for mobile devices. The Hantro acquisition was USD 6m in cash, and approximately USD 40m in stock, based on the volume-weighted average price of On2 shares for the 10 trading days prior to closing.
On2 has a market cap of approximately USD 362m.
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