Here's just a snippet:
On2 has a proprietary platform that includes video codecs VP6, VP7 and VP8, Flix Pro, a Web development platform, Flix Publisher, a series of Web browser plug-ins, Flix Engine, a server transcoding platform and Flix DirectShow SDK, a library for video content creation. What will Google do with this? In Google’s statement, the company noted that video compression should be part of the Web platform. Simply put, On2’s technology will be lumped into the Chrome browser, YouTube and other key areas.
While some folks view the Google purchase of On2 a threat to Adobe’s Flash it’s unclear what’ll happen. For starters, Adobe is a customer of On2’s.

http://blogs.zdnet.com/BTL/?p=22242

Interesting...its part of the Browser Wars