Google to buy On2 Technologies

The video compression technology firm will be sold to Google in a $US106.5 million stock deal

Google has reached an agreement to buy video compression technology vendor On2 Technologies in a stock deal worth about $US106.5 million, the companies announced.

Each outstanding share of On2 common stock will be converted into $US0.60 worth of Google class A common stock in the transaction, the companies said.

On2 offers video compression technologies used in Adobe Flash Player, VoIP (voice over Internet Protocol), mobile video and embedded devices.

On2 has more than 2 billion installations of its On2 Video VPx codecs, and its customers include AOL, Skype, Nokia, XM Satellite Radio, Sun Microsystems and Sony, the company says on its Web site.

On2 will provide Google with a "high-quality video compression technology," Sundar Pichai, vice president of product management of Google, said in a statement.

"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."

The deal shows Google's interest in pushing forward video technologies on a variety of mobile devices and through set-top boxes, said Gartner analyst Andrew Frank. The acquisition gives Google access to video compression software without paying licensing fees for MPEG's H.264 standard.

The acquisition allows Google to move forward with video projects without any "bottlenecks," Frank said.

The deal "reinforces the idea that Google is very serious about video," he added. "Video in the living room and video on the go are going to be major thrusts for Google in the future."

The deal's $US0.60 per share represents a premium of about 57 percent over the current price of On2's common stock, and a premium of about 62 percent over the average closing price of On2's common stock over the last six months.

The transaction, which is subject to On2 stockholder approval, regulatory clearances and other closing conditions, is expected to close in the fourth quarter of 2009.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Googledigital videomergers & acquistionsmultimediaOn2 Technologies

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Logitech Ultimate Ears Wonderboom Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?