Google Acquire Video Compression Company

Google have just announced that they have acquired a new technology company that will serve YouTube very well indeed.

That have just invested shares worth over $106 million dollars in On2 Technologies which are a video compression company. This new venture could change YouTube forever giving it faster download speeds and less buffering as a result.

This may also help to cut Google’s massive bandwidth bill of over $300 million per year that is necessary to keep YouTube up and running. By compressing the size of the videos (some of which are as big of 2GB since HD was introduced) this would make the site smaller and easier to manage while attracting more because of a better user experience.

“Because we spend a lot of time working to make the overall web experience better for users, we think that video compression technology should be a part of the web platform.

“To that end, we’re happy to announce today that we’ve signed a deal to acquire On2 Technologies, a leading creator of high-quality video compression technology.”