Google Acquires Video-Compression Vendor On2 Technologies

Google has announced an acquisition of video-compression vendor On2 Technologies. The deal, a stock-based transaction, will be valued at approximately $106.5 million.

As we all know, Google is a leading practitioner of what has come to be called cloud computing. As video streaming becomes more prevalent, and expectations surrounding its performance rise along with its rate of utilization, Google doubtless wants to incorporate the sort of technical advances that will enable it to maintain market leadership.

Google has YouTube, of course, but it also incorporates videoconferencing and other streaming video into a growing number of its applications and services, including Gmail.

Said Sundar Pichai, Google vice president of product management:

“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.”

On2 has three primary product offerings: On2 Video (advanced video compression), On2 Encoding (video encoding and publishing), and On2 Embedded (comprising solutions for chips and devices). It will be interesting to see whether the latter property and its technologies get prominently featured in Google’s relationships with its Anroid and Chrome OS hardware partners.

Additionally, On2 has something called On2 Flix Cloud, a web-based transcoding service designed to reduce the cost, complexity, and time of converting digital video for the web, IPTV, HD, and various devices. That also looks like something from which Google might be able to derive value.

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