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August 21, 2007

ON2 Technologies Inc is the Biggest Loser Today - Adobe Deal

posted by MR WAVETHEORY at 8/21/2007 12:57:00 PM
On2 Technologies Inc (AMEX ONT) is down 20% today. This stock trades all over the place. It zoomed up from $.64 all the way up to $3.99 earlier this year. Today, it's at $1.38 down around $.35. It's getting hit hard and I think it has to do with the uncertainty around the viability of the VP6 which is used in Flash Video Player by Adobe Systems Incorporated (Nasdaq ADBE) and VP7 codec which hasn't yet been included in the next line of Adobe Flash players. The news today seems to say that VP7 is dead, but I don't know for sure. The announcement is that On2 is building in H.264 support into its products which is used in the Apple iPhone (Nasdaq AAPL) and QuickTime and also by YouTube when it delivers videos to the Apple iPhone in the H.264 format. It could mean that On2 is merely supporting a large customer like Apple who has a particular need for its mobile video product or it could mean that customers want H.264 instead of VP6 / 7. If the former, then it could merely mean that On2 is integrating its Hantro acquisition quickly - Hantro was a mobile video company that on2 bought recently. If the latter, then it's big trouble. The market seems to be saying that VP6 and 7 is dead. I'm not an expert or insider on this matter and the stock is very very volatile - good for trading opportunities. It's also highly manipulated with very little news coming from the company even on big days like today. That's what makes speculation so interesting and risky! Basically, the stock is where it was at in the beginning of the year.

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Blogger Kiran Kumar said...

Google going to acquire On2 Technologies. For more info visit,


7:58 AM  

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