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Why Google acquired On2?

Google today acquired video compression developer On2 Technologies, makers of Flix Standard, Pro, Exporter, Live, Engine and Directshow SDK for $106.5m in stock.

Google has been continually looking to improve video quality and delivery on the web, and On2’s video technologies will now allow them to do even more with their products and initiatives. Apparently, Google expressed interest in all parts of On2’s video technology. With Google Video, Google Talk and YouTube, among others, Google definitely has a substantial interest in developing tools and technology that will better support more high quality video on the Internet.

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