Google Acquires On2

This isn’t an acquisition that’s likely to get a lot of initial attention, but I think it will prove to be a very important deal: Google Acquires Video Compression Technology Company On2 For $106 Million. On2’s codecs are some of the very best and the company has managed to get them embedded into a lot of products. I think this is the first time Google has actually owned codecs. Since they’ll now own some of the best codecs and control the most important platform where they’re used (YouTube), there’s great potential for both innovation and abuse. Keep your eye on this one.

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