OpenTV to buy Spyglass in $2.5 bln
stock deal
MOUNTAIN VIEW, Calif, March 26 (Reuters) - OpenTV
Corp. (NasdaqNM:OPTV - news) , which makes software for
digital interactive television, said Sunday it will buy Internet
consultant and software provider SpyGlass Inc.
(NasdaqNM:SPYG - news) for about $2.5 billion in stock, or just
over $122 per SpyGlass share.
Under the terms of the tax-free deal, Spyglass stockholders will receive 0.7236 OpenTV Series A
ordinary shares in exchange for each Spyglass common share, OpenTV said in a statement.
Based on OpenTV's closing stock price on March 24, the transaction values Naperville, Ill-based
Spyglass at $122.28 per share, an about 75 percent premium to Spyglass' closing price of 69-7/8 on
Friday.
Spyglass stockholders and option holders will receive about 15 million OpenTV shares and own
about 18 percent of the combined company's stock on a fully diluted basis, said OpenTV.
The transaction is aimed at expanding OpenTV's digital interactive services to allow customers to
browse the web, chat, send and receive e-mail and shop via their set-top TV boxes.
The transaction has been approved by the boards of both companies, OpenTV said.
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