ON2 Technologies is said to be the leading developer of the video compression technology. And Google eyed an advantage with the technology for the Google products, and is now currently in a deal to acquire it.

I am not actually interested of how much is the deal, which according to the report is in per stock basis that will worth a $106.5 million. What I really wonder is that how can Google use this for their own products.

On the press release, Google seems planning to incorporate the video compression of ON2 which is known as VP6 into their web products. Is it for the YouTube or for other and future web products of Google.

“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, vice president, Product Management, Google. “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.”

There is also an speculation that after this acquiring transaction, the license fee for the use of the VP6 will be waived by Google and it will be sent to open source.

There are observers also who think negatively. They said that Google might not be planning to use the VP6 technology and that Google just want to purchase this product and kill it just like what Google did to other technology it bought before.

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