On Thursday, search engine giant Google Inc. confirmed that it is hiking its offered bid for On2 Technologies Inc. to $132 Million. The move has been a direct result of the latter's shareholders resisting Google's previous takeover bid of $106.5 Million.

Google had announced the planned takeover of On2, which is a New York based video compression firm, back in August of 2009, but last month, it was announced that Google had failed to collect enough shares in order to complete the deal.

Under the new bid, On2 shareholders will be given an additional 15 cents in cash for every share that they possess, which will be in addition to the 0.001 of a share of Google, which is worth about 60 cents, that was offered in the first place.

When the deal was announced by Google last year, the price offered represented a premium of some 62% over the average closing price recorded by On2's shares for the 6 months that immediately preceded the announcement.