Google Buys Web Video Software Firm
Google, on Wednesday, anounced that it has agreed to buy On2 Technologies, which sells video compression software, in a stock deal valued at about $106 million. The per-share price was 57 percent above On2’s closing stock price on Tuesday, and On2’s shares soared on the news.
Similar to Google’s 2006 acquisition of YouTube at a reported $1.6 Billion, the deal with give Google a much needed pull in the world of online videos. Even so, Many question the ROI and justification of Google’s purchase of not only On2, but YouTube alike.