Google Acquires Video Compression Firm for $106.5M
Posted by Jesse Ward on Monday, August 10, 2009 · 
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Google announced last week that it plans to acquire On2 Technologies Inc., a provider of digital video compression technology, in an all-stock deal valued at $106.5 million.
On2 helps shrink video files so they can be transferred quickly and easily across the Web. The company’s software also helps make high-definition video playback possible on mobile devices. Google, which owns the popular video sharing site YouTube, recognizes the importance and future potential for online video across all three screens: the traditional TV, PC and mobile device.
“Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the Web platform,” said Sundar Pichai, vice President, product management, Google. “We are committed to innovation in video quality on the Web, and we believe that On2′s team and technology will help us further that goal.”
Google expects the deal to close in the fourth quarter.
The Wall Street Journal has more.
Read Google’s blog posting.
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