Logitech is expanding its streaming empire. The company announced yesterday that it agreed to acquire Streamlabs, which offers a suite of tools made specifically for live streamers, for approximately $89 million in cash. (With the promise of another $29 million in Logitech stock "subject to the achievement of significant revenue growth targets for Streamlabs.") It expects regulators to approve the deal within the next few weeks.
Streamlabs was created to give streamers an easier way to manage certain aspects of their broadcasts, such as displaying on-screen messages when their viewers subscribe or donate to them, that were difficult to set up before. The company has expanded in the years since: over the last year it's announced an app store for streamers, augmented reality tools and a website creation tool made specifically for popular broadcasters.
Perhaps more importantly, the company also makes Streamlabs OBS, which can be used to stream to various platforms. (It's based on the popular Open Broadcaster Software program, which is where the OBS in the name comes from.) While other manufacturers have started to focus on the streaming market as well, most of them haven't gone so far as to buy a company that handles damn near every aspect of the broadcasting process.
Here's what Streamlabs CEO Ali Moiz said in a blog post about the acquisition:
"Both Streamlabs and Logitech have strong brands in the gaming space with millions of users. While we help streamers broadcast, monetize and look their best via software, Logitech’s gear enables them to look, perform and sound amazing. When my brother Murti and I founded Streamlabs our goal was to enable streamers to pursue their passion while making a living. Now that we’re part of the Logitech family, we’ll be able to take this so much further with their reach, resources and expertise."
Moiz said the Logitech acquisition isn't expected to immediately change Streamlabs' offerings. The company's services will continue to support numerous streaming platforms, won't be exclusive to specific hardware and will remain free to use. That might change in the future--larger companies often tell startups they'll be more independent than they really are--but for now Moiz said that "nothing changes" so far as streamers are concerned.
This is just the latest of Logitech's efforts to capitalize on the streaming market. It acquired Blue Microphones in 2018, too, in an effort to appeal to content creators. With the Streamlabs acquisition it would be possible for Logitech products to be used for everything in a stream except the actual, you know, streaming part. We wouldn't be surprised if the company decides to rectify that in a future acquisition as well.