On2, the video technology company being sold to Google (NSDQ: GOOG), wants to delay a vote on Google’s offer for the second time in as many weeks — a sign that the company still does not have enough votes to get the deal approved. Shareholders were initially scheduled to vote on Google’s $106.5 million offer last Friday, but On2 decided to adjourn that meeting saying it wanted to give stockholders more time to vote. A new vote was scheduled for Wednesday, but the company now says the only matter up for consideration at the meeting will be whether to adjourn the meeting once again.
In the wake of Google’s offer to buy the company, shareholders sued, alleging that On2’s management had not shopped the company around to get the best price and that it was selling at a discount to what it potentially could have been sold for.
Those issues appeared to have been resolved when On2 announced a settlement in October. Judging from the repeated delays in voting (and the amount of On2 mail in my inbox) shareholder complaints do not appear to have been settled, however.
On2 says that the majority of shares that have been voted so far are in favor of the deal — but that it needs the majority of all outstanding shares to be voted in favor of the deal in order to get approval.
Both companies had initially said they expected the merger to be completed by the fourth quarter of 2009. If the deal is not completed by March 31, either party can terminate it.