GeeKs Blogging @ dotCOM

Google acquires On2

by Nitin Jain

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Every big company seems on be in an acquisition mode. Recession seems to have offered the best chance to the industry to consolidate.

Google and On2, today, jointly made the announcement of Google acquiring On2. On2’s product portfolio includes Advanced Video Compression, Video Encoding & Publishing and Embedded solutions for Chips and Devices. Please click here to view On2’s complete Product Portfolio.

The acquisition is expected to complete later this year, and has been valued at approximately 106 million. This is about 57% premium over On2’s last closing share prices.

The closing conditions like shareholder approval, regulatory approval and others still hold for the deal.

Strategically, I see this as a perfect fit for Google, coming at a time when Google is looking to move into new areas and technologies. It will fit in perfectly with Google’s aim of turning into a complete solutions provider. Video compression and transmission is definitely a hot and challenging technology at the moment. And, I am sure Google will do a jolly good job at capitalizing on it.

As of now, however, nothing will change on On2’s current and prospective customers.

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