Google have signed a deal to acquire On2, a leading developer of video compression technology. "Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform," said Sundar Pichai. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal." Under the terms of the agreement, each outstanding share of On2 common stock will be converted into $0.60 worth of Google class A common stock in a stock-for-stock transaction. The transaction is valued at approximately $106.5 million.
More info: Press Release