It has just been announced that Google has agreed to purchase On2 Technologies, INC, a video compression company, for $106.5 million. Google has said that they view online video as an ever increasingly important aspect of the Internet experience. By gobbling up On2, in a stock-for-stock deal, Google’s online video empire (which already includes YouTube), is made just that much stronger. And with Google also looking to develop it’s own operating system, making it a direct competitor with Microsoft and Apple, this deal may be even more important to Google.
Here’s an excerpt from the On2 press release (the full version of which can be found HERE)…
“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.”
“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. This transaction is a testament to the hard work of every On2 employee and the strongest possible endorsement of our products and people. 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.”
It’s also important to note that On2′s video compression technology also extends into the mobile electronics world of gadgets. Considering how Google is hoping to combat Apple’s iPhone with it’s Android technology, it’s not hard to imagine Google using this merger to strengthen and expand that aspect of its business model, as well. All in all, this deal makes Google an even stronger company (not that it was weak before this deal!) and gives it a more powerful arsenol to help combat Microsoft and Apple. And with Microsoft and Yahoo teaming up to go after Google, you can expect more of these type of deals to continue on all sides.
-Dan Cheek
www.LaserBurnMedia.com
dan@laserburnmedia.com
