Google Bought Video Compression Specialists On2 Technologies

Google has acquired On2 Technologies in a stock for stock transaction which will see each outstanding share of On2 common stock being converted into $0.60 worth of Google class A common stock.
The overall acquisition cost for Google is $106 million and Google has taken this step to thoroughly use On2 futuristic video compression techniques for its own expansion. YouTube currently lacks ways that could assist High-Definition HD Video conversions and compressions, which means that the deal is much needed considering the bright future Google sees for their service.
The deal is expected to close by the fourth-quarter of this year and the investors look already pleased as the On2 stock closed 62% over the premium at the close of yesterday.
Google is certainly feeling the pressure with its contemporaries expanding its domains and this deal will have surely relaxed the nerves a bit. Now it can further evolve the immensely successful YouTube to newer heights.
[via TechCrunch]