Groove lawsuit offers acquisition details
The lawsuit by an ex-Groove Networks executive has revealed some of the details that were kept quiet with regards to the company's pending takeover by Microsoft.
According to a Boston Globe report, the lawsuit by former executive VP Michael Matthews pegs the purchase price for Groove at $120 million. Microsoft did not provide any of the financial details when it announced the deal on March 10.
As we noted last week, the Delaware judge overseeing the case blocked Matthews' attempt for a restraining order to halt the deal. The Globe article said that the judge did leave room for Matthews to amend the suit seeking a different distribution of the deal's proceeds. According to the Globe and other reports, Matthews' suit charges that the deal does not adequately represent the interests of some Groove workers that were granted common or preferred stock.