video compression technology

Stepping up efforts to foster the spread of Internet video, Google Inc announced that it would acquire video compression software maker On2 Technologies Inc for $106.5 million. This technology, which shrinks video files, making it easier to send video across the Internet, has become increasingly important as more people watch and share videos online. Each outstanding common share of On2 will be converted into 60 cents worth of Google Class A common stock under the deal.