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Google's YouTube Acquiring Twitch for $1 Billion (Report)

By - Source: Variety | B 12 comments

Unnamed sources told Variety on Monday that Google’s YouTube plans to acquire game video streaming company Twitch for more than $1 billion USD in cold hard cash. By comparison, Google paid $1.65 billion for YouTube back in 2006.

According to the sources, YouTube is currently getting ready to face challenges from U.S. regulators over the possible Twitch deal. The Justice Department will likely want to investigate to see if the acquisition will raise anti-competition issues within the online video streaming market.

Meanwhile, two additional sources told The Wall Street Journal that the deal is actually in an early stage, and is not finalizing anytime soon. One of those sources also said that Twitch sought out additional avenues of funding rather than an outright sale of Twitch.

Another set of sources told The Verge that Twitch actually evaluated offers from potential buyers, such as Microsoft. The company even courted funding offers from venture capitalists. However Twitch decided it liked the Google offer best, and believes YouTube can help Twitch become the leader in live video game streaming.

Founded by Justin Kan and Emmett Shear in June 2011 as a subsidiary of Justin.tv, Twitch is a live streaming video platform that mainly focuses on general video gaming and e-sports. During its peak hours, Twitch falls in behind Netflix, Google and Apple as the fourth largest source of Internet traffic. There are over 43 million viewers each month, and over 1 million broadcasters.

Twitch originally launched on the PC, but now there are apps on the Xbox One and PlayStation 4 that allow owners to stream console gameplay directly to the site. Sources say that Google and Twitch have agreed on a price, and are now hammering out the details, including how separate the Twitch service and branding will be from the Google collective, if at all.

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  • 0 Hide
    pills161 , May 19, 2014 1:15 PM
    Wow Google is just swallowing up everybody.
  • 8 Hide
    dstarr3 , May 19, 2014 1:44 PM
    Quote:
    Wow Google is just swallowing up everybody.


    Fortunately, they have a history of being respectful about it. They generally still allow the companies and projects the absorb to operate mostly independently. All of their purchasing is more about integration rather than elimination.

    Think of what Facebook did to Instagram. They bought them, and then... changed basically nothing. Just enabled Facebook and Instagram to interface more efficiently.
  • -3 Hide
    danwat1234 , May 19, 2014 3:08 PM
    Francis really doesn't like this at all!
    https://www.youtube.com/watch?v=loeFYdbvrZM

    And neither does Boogies2988 himself (his actual thoughts);
    https://www.youtube.com/watch?v=Og3JdlgnaM8

    If you vote me down, please say why
  • 3 Hide
    fkr , May 19, 2014 7:45 PM
    Quote:
    Francis really doesn't like this at all!
    https://www.youtube.com/watch?v=loeFYdbvrZM

    And neither does Boogies2988 himself (his actual thoughts);
    https://www.youtube.com/watch?v=Og3JdlgnaM8

    If you vote me down, please say why



    I downvoted because you do not like this deal but you used a google service to voice your opinion.

    that and because twitch chat has been failing terribly lately.
  • 0 Hide
    knowom , May 20, 2014 12:14 AM
    Quote:
    Quote:
    Francis really doesn't like this at all!
    https://www.youtube.com/watch?v=loeFYdbvrZM

    And neither does Boogies2988 himself (his actual thoughts);
    https://www.youtube.com/watch?v=Og3JdlgnaM8

    If you vote me down, please say why



    I downvoted because you do not like this deal but you used a google service to voice your opinion.

    that and because twitch chat has been failing terribly lately.
    I voted you up because that was funny you made a pretty good point.
  • 1 Hide
    danwat1234 , May 20, 2014 3:17 AM
    Quote:
    Quote:
    Francis really doesn't like this at all!
    https://www.youtube.com/watch?v=loeFYdbvrZM

    And neither does Boogies2988 himself (his actual thoughts);
    https://www.youtube.com/watch?v=Og3JdlgnaM8

    If you vote me down, please say why



    I downvoted because you do not like this deal but you used a google service to voice your opinion.

    that and because twitch chat has been failing terribly lately.

    I was more interested in why people don't like the boogie2988 videos since I posted a comment with a video link about the subject in the "You Can Now Refund Your Xbox Live Subscription" (http://www.tomshardware.com/forum/id-2142899/refund-xbox-live-subscription.html) tomshardware article a few days ago and got "-4" vote. But thanks for the laugh
  • 2 Hide
    mobrocket , May 20, 2014 6:05 AM
    I think this could be a real boost for Twitch... Google can provided them the financial and tech backing they need.

    Google will just have to toe the line on making sure Twitch isn't violating copyright law
  • 3 Hide
    Tankattack , May 20, 2014 6:16 AM
    I love twitch, and I feel like this deal would really help twitch (mainly the chat). But I do have a few concerns as well. If google tries to put the same regulations on twitch that it has on youtube it would kill off a large reason why I use twitch. most of the people I watch are small, under 20 viewers per stream. If they have to jump through hoops just to steam it could be trouble. As of now it's easier to grow on twitch then it is on youtube and I hope it stays that way. Also I hope they don't cram in the 40 second unskippable ads that are on youtube. Nothing sucks like watching a tournament and just when the action starts you get an ad. Pros and cons if this deal goes through people need to remember that.
  • 0 Hide
    Tankattack , May 20, 2014 6:24 AM
    I love twitch, and I feel like this deal would really help twitch (mainly the chat). But I do have a few concerns as well. If google tries to put the same regulations on twitch that it has on youtube it would kill off a large reason why I use twitch. most of the people I watch are small, under 20 viewers per stream. If they have to jump through hoops just to steam it could be trouble. As of now it's easier to grow on twitch then it is on youtube and I hope it stays that way. Also I hope they don't cram in the 40 second unskippable ads that are on youtube. Nothing sucks like watching a tournament and just when the action starts you get an ad. Pros and cons if this deal goes through people need to remember that.
  • 1 Hide
    joe gamer , May 20, 2014 6:44 AM
    Google has a terrible reputation about "intellectual" property and respecting fair use. This makes me sad panda because I suspect that the only thing that would get the behemoth to change it's ways and adopt a more consumer friendly attitude is competition from other video repositories like twitch, but if they keep buying up all the competition.....
  • -1 Hide
    master9716 , May 20, 2014 7:33 AM
    I thought twitch was ran by some little Troll brats that got lucky and got some huge funding and afterward still acted totally unprofessional "kids" towards users banning them for dumb things and so on instead of acting like a respected company. Now the brats are getting billions?
  • 0 Hide
    T-Bag , May 20, 2014 9:32 AM
    Alright. I hope gamers don't get copyright infringement for the background musics. Lets see.
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