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Google to acquire On2 Technologies Inc. for $106.5 million

Written by James Delahunty (Google+) @ 05 Aug 2009 11:06 User comments (1)

Google to acquire On2 Technologies Inc. for $106.5 million Google Inc. has announced that it plans to acquire web video-compression expert On2 Technologies Inc. in an all-stock deal worth an estimated $106.5 million. On2 Technologies pioneers video compression technology geared toward providing high quality video on the web at ever-decreasing file sizes, to help address the bandwidth challenges that are brought up by the rise of online video.
Google, which owns YouTube, the largest video-sharing hub in the world, can only benefit from acquiring a well-known company such as On2. "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, Google's vice president for product management in a statement.

The deal, which the search engine-giant expects to complete in the fourth quarter, will provide On2 shareholders 60 cents worth of Google class A common shares for each outstanding On2 share they hold, amounting to a 57% premium compared to the closing price on Tuesday.

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1 user comment

114.8.2009 4:04

Did you know that the deal PROHIBITS ON2 from conducting business as usual??!!!! They can't do deals, they can't license any of their products to any potential customers!! What is UP with that??!!!

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