Google acquires On2 Technologies

Google acquires On2 Technologies

Google might have sold their radio advertising business to WideOrbit, but they are investing more in video technologies.

The search engine giant has announced that they are taking over On2 Technologies which is primarily a video technology solutions provider.

The deal is worth around USD 106.5 million.

Google spoke about this 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.”

The company declined to comment on reports that they just might go ahead and open source the technologies owned by On2.

Google is likely to apply these technologies on their YouTube video sharing service to lower the cost of data storage and transmission. Higher quality video transmission would enable them to store more video in same space and deliver it at faster speeds over the web.