Google buys video compression firm

Posted on Wednesday, August 05 2009 @ 15:32 CEST by Thomas De Maesschalck
Google's video sites consume massive amounts of bandwidth and generate no profit, so it shouldn't come as a surprise that the search giant is looking at ways to cut costs. Today the company revealed it plans to acquire digital video compression firm On2 Technologies in an all-stock deal valued at $106.5 million.
Mountain View, Calif.-based Google, which owns the popular video sharing site YouTube, says On2 shareholders will receive 60 cents worth of Google class A common shares for each outstanding share of On2 they hold. That represents a 57 percent premium to the Clifton Park, N.Y., company's closing price Tuesday.
Source: NY Times


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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