Many believe that GOOG orchestrated the short attack on ONT and then formally entered when the price was low enough. In fact, many believe that GOOG has been in control of this company since the 'acting' CEO took over, Matt Frost, who had a clause inserted into his contract that would allow him to work from home four days a week. Now what CEO of a legitimately organized company would be allowed to work from home? Anybody?

This is NOT over.

J

As background, the pps hit a closing high of $3.38 on May 18, 2007 after announcing that it was purchasing a Finnish company, Hantro and at approximately the same time the company announced that it was considering a reverse stock split which would further increase the pps allowing additional institutional investors access to the company.

(By the way, just yesterday DivX announced a partnership with Hantro to develop hardware-based Intellectual Property (IP) video cores for mobile devices and set-top boxes (STB) that are capable of decoding high quality DivX Home Theater video.)

At this point, the pps retreated from that closing high and eventually the reverse split possibility was dropped. It was during this period that the possible price manipulation and shorting took place. The stock experienced repeated presence on and off the Threshold List in May, June, and July of 2007 and then continuous listing on the SEC’s own REG SHO from July 2007 to January 2008 for persistent Fails To Deliver.

The pps continued its downward spiral (to $.11 earlier this year), so that an offer of $.45 to $.50 to a casual observer would seem fair. Many prestigious companies had signed on as users of On2’s technology: Java, Adobe, Texas Instruments, Move Networks, Skype, and many others including Chinese internet companies.

The shareholders are upset to say the least! The offer price was based on an artificially low (manipulated?) pps.

On the very next day after the announcement of the merger with Google, August 6, On2 announced its first ever “break even” quarter on a per share basis….and if there had not been an expenditure of $420,000 for its anticipated merger with Google, the company would, indeed, had had the long awaited quarter in the black and be able to come into its own and have its price rise on its merits.

Instead, the previous day’s announcement of the merger put a ceiling on the price of the stock (60 cents) effectively precluding stock holders from any future gains!

I could continue, but I do not want this comment to appear extra long and time consuming.