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Message: <blockquote data-quote="lkdood" data-source="post: 5300606" data-attributes="member: 92282">Google Inc. says it plans to acquire On2 Technologies Inc., a provider of digital video compression technology, in an all-stock deal valued at $106.5 million.On2 helps shrink video files so they can be sent more easily across the Web, an increasingly important technology as the volume of online video grows rapidly.Mountain View, Calif.-based Google, which owns the popular video sharing site YouTube, says On2 shareholders will receive 60 cents worth of Google class A common shares for each outstanding share of On2 they hold. That represents a 57 percent premium to the Clifton Park, N.Y., company's closing price Tuesday.Sundar Pichai, Google's vice president for product management said Wednesday in a statement, "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."Google expects the deal to close in the fourth quarter.Google's shares jumped $2.27 to $456 in premarket trading, while On2's shares surged 20 cents, or 52 percent, to 58 cents.<a href="http://www.google.com/hostednews/ap/article/ALeqM5iNRX2eMv9lFX-LycDwzk8NaVPNmwD99SO2200" target="_blank"><img src="http://www.google.com/hostednews/img/ap_logo.gif" alt="" class="fr-fic fr-dii fr-draggable " style="" /></a></blockquote>

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