Google acquires web video firm On2 for US$106.5m


5 Aug 2009

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Google today announced that it acquired tech firm On2, developers of video compression technology used by companies including Skype, Sony, Adobe and Nokia.

Google’s last big video-related acquisition was of course, video sharing site YouTube, which it purchased for US$1.65bn in 2006. Following this the search engine giant has also made acquisitions including Omnisio in July 2008, a video mash-up service that allows users to edit and mix online video footage.

Google’s VP of product management, Sundar Pichai, said of the On2 acquisition: "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.

"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."

While Google intends to innovate and improve its video technology it has not yet specified what this might be, but On2’s video compression is used in various platforms including Adobe’s Flash player, Web 2.0 offerings, VoIP, mobile video and embedded devices.

"We’re thrilled that On2 is joining one of the world’s most innovative companies," said Matt Frost, interim CEO of On2.

"After intensive review of On2 products, Google confirmed our long-held beliefs as to the quality of our video technologies.

"On2 will continue to improve, support and sell our products throughout the transition. We believe that Google shares our ambitions and know that our products and expertise, combined with Google’s globally recognized brand, ingenuity and resources, will create an incredible team."