Under the terms of the stock swap, which was announced earlier this month, each share of On2 will be exchanged for 60 cents’ worth of Google common stock–a 57 percent premium over On2′s closing stock price on the last trading day before the announcement. The complaint notes that On2′s stock traded at 65 cents in May and reached as high as $1.16 in 2008.

On2 shareholders unhappy with Google deal

On2 declined to comment,womens timberland boots, and Google did not immediately respond to requests for comment.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000,ghd hair straightener, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.

On2′s video-compression technology is used in Adobe’s Flash software and the Hulu video site, among others. The company licenses various “codecs”–the software used to encode video so it’s compact enough to squeeze down a narrow Internet pipe, then to expand it at the other end.

The deal,cheap timberland boots, which is expected to close in the fourth quarter of this year, still needs the approval of On2 shareholders, but the board has yet to announce a date for the vote.