They're shutting down the service, so this was obviously a talent acquisition. This is fantastic for Ray and the Toronto scene in general.
Even better, they'll be working at Google Canada, so the talent will not be lost to the US and hopefully the money will recirculate in the Canadian economy.
To an extent, this is also endemic of Canadian startups in general... witness Radian6's recent acquisition by Salesforce.com. We're just not turning out big, global, multi-billion-dollar businesses like RIM or (formerly) Nortel. Hopefully some of this newfound money will go back into funding new startups that can make the leap.