"There's been a lot of speculation that Google is purchasing On2 to take advantage of the advanced V7 and V8 codecs for either open source the codecs and make them license-free. Such a move would create serious competition to the other major video compression technologies of H.264, Flash and Silverlight all of which are proprietary codecs. Could Google be looking to to avoid the licensing fees for H.264? Will Google open source On2's technology to disrupt HTML5? Is Google looking to bake the high quality video compression technology into YouTube to speed up videos and lower bandwidth costs?
This all sounds like a big deal that's going to give Google the edge to disrupt the fabric of the online video landscape and "win the online video format war" and with the acquisition Google acquires technology that it can embed within its Android and Chrome OS platforms. This may cause companies like Adobe, Microsoft and Apple to take a financial hit and force them to support whatever new video codec that Google brings to market. Also, with the situation regarding browser-based decoding for tag in HTML5 at a stalemate and undefined, Google could help change the tide by open sourcing On2 VP technology."I also cited a number of sources in that post who shared their theories on the acquisition, such as Dan Rayburn who didn't think it would be a big deal, Om Malik who said to pay attention to what Google does with Android, and Brian Dipert who thought that it could be Google's latest move to wrest control from Adobe, Apple, Microsoft and Mozilla.