It is a really big news. Google is now having reached an agreement to purchase the On2 Technologies Inc., a company that developed the video compression technology for U.S. $ 106 million. Google looks do not stopping on strengthening their business.

As quoted from detikINET today, the process of acquisition that is considered giving benefits to Google, predicted finish in the 2009 quarter four this year.

“Video is the essential part in berinternet, and we believe high-quality compressed video must be in the web platform,” said Sundar Pichai, Google’s Vice President. “We are committed to innovation in the quality of video on the web and we believe the team and technology, On2 will help us achieve that goal,”.

Google decision is smart in doing this acquisition. At least said by Dan Olds, analyst at the Gabriel Consulting Group.

“On2 have some technology in the best compression and encoding video. This technology will be very useful for Google to handle them because the video so much,” tukas Olds.

The main focus of this acquisition is to strengthen YouTube. YouTube video can be more reduced making it easier trasmitted on the internet. Ultimately, cost of bandwidth can also be pressed for savings.

Google may choose only so On2 customers to enjoy their technology. However, it seems, Google has chosen the company to get engineers who is over there. This guarantee Google will continue to get the latest innovation from them.