Google Buys Video Compression Technology Firm
Google this week announced it has entered into a definitive agreement to acquire On2 Technologies, a video compression technology company whichholds licenses for Adobe for Flash video, Sun Microsystems for Java-FX, Skype for video conferencing, and Movie Networks for delivering HD web TV.
“Today video is an essential part of the web experience, and we believe high-quality video compression technology should be 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.”
On2 stockholders will receive shares of Google class A common stock, the number of which will be determined by dividing $0.60 per share by the volume weighted average trading price during the twenty trading-day period ending on and including the second trading day prior to meeting with On2′s stock holders to vote on the merger agreement, Google says.
The deal is expected to close in the fourth quarter of 2009.
