Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Google to buy video compression firm

Discussion in 'Tech, Gadgets & Science Forum' started by MziziMkavu, Aug 6, 2009.

  1. MziziMkavu

    MziziMkavu JF-Expert Member

    Aug 6, 2009
    Joined: Feb 3, 2009
    Messages: 38,331
    Likes Received: 2,408
    Trophy Points: 280
    On2 helps shrink video files so they can be sent more easily across the Web
    updated 10:34 a.m. ET Aug. 5, 2009

    MOUNTAIN VIEW, Calif. - Google says it plans to acquire On2 Technologies, 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 sent more easily across the Web, an increasingly important technology as the volume of online video grows rapidly.

    Mountain View, Calif.-based Google, which owns the popular video sharing site YouTube, says On2 shareholders will receive 60 cents worth of Google class A common shares for each outstanding share of On2 they hold. That represents a 57 percent premium to the Clifton Park, N.Y., company's closing price Tuesday.
    Sundar Pichai, Google's vice president for product management said Wednesday in a statement, "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."

    Google expects the deal to close in the fourth quarter.