Google acquires video firm On2 for $106.5 million

Google announced it will acquire video compression software and solutions developer On2 Technologies, a stock-for-stock transaction valued at $106.5 million. The deal is expected to close in the fourth quarter. On2 creates compression technologies that power desktop and mobile video applications--the firm's customers include Nokia, Adobe, Sun Microsystems, Skype, Sony and Brightcove.

Google's existing video efforts are led by user-generated content sharing website YouTube, which the web services giant acquired for $1.65 billion in November 2006.

For more on the Google/On2 deal:
- read this release 

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