Google now owns a small Irish company called Green Parrot Pictures. Why should you care? Their video compression technology will allow for better looking, less stuttery video, packaged in smaller file sizes on YouTube. Win win. [YouTube]
This seems to be the foundation of a logical move by Google against Apple's iMovie. If Google can provide Youtube users simple cloud based editing and enhancement tools it would undermine the appeal of the Mac OS as a digital hub and improve the appeal of Google's own fledgling OS's.
Of course this acquisition on its own doesn't accomplish this, but it does reveal some of Google's hand by demonstrating its interest in integrating these functions within Youtube and away from either desktop or mobile editing clients.