Youtube to buy Twitch for $1 billionMon, May 19, 2014 - 10:37 AM
Google-owned video service YouTube is said to be in talks to acquire Twitch for $1 billion! Twitch, a fast-growing, live-video-streaming service that is gamer oriented. Twitch, launched in June 2011, is the most popular Internet destination for watching and broadcasting videogame play. The startup raised $20 million from investors, including Thrive Capital and videogame-maker Take-Two Interactive Software.
The Wall Street Journal believes that the discussions surrounding the acquisition are “early” and that “a deal isn’t imminent.” YouTube is also apparently preparing for U.S. regulators to challenge the purchase. YouTube is the leader in online video, but is behind the curve when it comes to live streaming. Twitch currently attracts 1 million unique monthly broadcasters and 45 million monthly viewers to its platform and now has direct integration with the PlayStation 4, Xbox One and the PC. Last October’s League of Legends Season 3 World Championship event attracted 32m viewers in a single day, with an impressive 8.5 million devices streaming the match simultaneously at its peak. Youtube would want to tap into the large Twitch market as those are impressive numbers and the possibility is there to grow the market.
Twitch’s PR Director said on Twitter that “Twitch doesn’t comment on rumors.” Google hasn’t made an official statement yet either, but from we don’t expect that silence to last much longer.