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VIRTUALISATION Google getting On2 video compression
VIRTUALISATION Google getting On2 video compression | Google getting On2 video compression |
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| by Stephen Withers | |
| Thursday, 06 August 2009 | |
  
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On2 originally developed video compression technology used in video games and multimedia, but it has diversified into web, mobile and wireless, video conferencing and other applications. The company's customer list includes big names such as Adobe, Skype, Nokia, Infineon, Sun Microsystems, and Sony. Google's reasoning is that "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," according to Sundar Pichai, Google's vice president, product management. "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," added Pichai. The deal is valued at around $US106.5 million. On2 stockholders will receive $US0.60 worth of Google class A common stock for each On2 share. This represents a premium of around 60 percent on On2's recent share price. On2 shares rose from a closing price of $US0.38 the previous day to open at $US0.60, eventually closing at $US0.57. "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," said Matt Frost, interim CEO of On2. "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," he added. The transaction is subject to stockholder and regulatory approval, as well as other conditions. The deal is expected to close during the fourth quarter of 2009. |
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