First, as the other comment said - On2 wasn't bought for products. It was bought for technology and people. Google's motives should be clear with the WebM open source version of On2's VP8 codec. Second, you're trivializing the cost and complexity required to keep a product alive and supported. It's not just leaving a product in the channel to blossom. It has to be supported, patched, and updated - and the products sold by On2 were not logical for Google to continue selling as they were - but the technology and people from On2 are hardly going to waste at Google.