Google Buying Video Compression Company of 1.20 billion dollars

MOUNTAIN VIEW - In the midst of economic recession, Google still continue to do acquisitions. Fund about 1.20 billion dollars to buying company based in Mountain View, California, U.S. to buy a manufacturer of video compression solutions On2 Technologies Inc..

On2 video compression technology developed so that the files with large size can be compressed to be easily sent over the Internet. The technology is very important in the middle of the multimedia content on the Internet.

"Video is now an important part of web services technology and we believe high-quality video compression should be part of a web platform," said Sundar Pichai, vice president of Google's product management.

This acquisition is part of Google's strategy to strengthen its business in video services. Previously Google has acquired YouTube worth 1.65 billion dollars in 2006.

The value offered by Google's acquisition to On2 Technologies for 106.5 million U.S. dollars. Google hopes the acquisition can be completed in the fourth quarter of this year.