Atlanta (ip-192): Google Inc. announced today that it will issue $106.5 million in stock to acquire On2 Technologies Inc. to improve its video operations.

On2 makes video-compression technology, which allows for the quick transfer of large video files across the web. The compression technology represents a key asset since online-video viewership continues to surge and Google tries to keep one of the most-visited video sites – YouTube – up-to-date. In addition, On2 has software that helps make high-definition video playback possible on mobile devices.

"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,” so Google executive Sundar Pichai.

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