YouTube in Talks to Buy Twitch in Billion Dollar Deal
Published on: 19th May 2014
Note -- this news article is more than a year old.
Google's YouTube video sharing service is reportedly about to make a USD1 billion acquisition of its own, and buy the popular videogame streaming company, Twitch.
YouTube itself was acquired by Google back in 2006 for a then headline grabbing USD1.65 billion.
The deal, which is said to be an all-cash offer is expected to be announced shortly, Variety reported, citing people familiar with the matter.
Twitch enables users to upload video clips of gameplay from popular games consoles, and claims around a million users upload video files each month. Videos of complex computer games are increasingly popular as a form of online tutorial, although they are gaining a reputation as a form of entertainment in their own right.
Twitch was launched in June 2011 by Justin Kan and Emmett Shear.
The deal is however expected to come under serious regulatory scrutiny as it would see a reduction in competitiveness within the online video market. Twitch currently ranks fourth in total peak internet traffic in the USA.
Twitch's PR Director stated via Twitter that "Twitch doesn't comment on rumors."
On the web: Variety