Twitch, the videogame-streaming service, and YouTube might merge as Google has offered over $1 billion to acquire the startup.
YouTube, world's number one online video streaming service, is making its biggest move yet by acquiring the renowned videogame-streaming service Twitch for more than $1 billion. The acquisition news, which is yet to be confirmed, was reported online by Variety, Sunday, citing unnamed sources familiar with the proceedings of the deal. A report from the Wall Street Journal reveals that the Google-Twitch deal talks are still in the early stages.
YouTube's interest in acquiring Twitch makes a lot of sense as it will push the video streaming giant into the gaming sector. YouTube is by far the biggest online streaming service for free videos, serving more than 6 billion hours of video per month and hosts 1 billion users across the world. As for Twitch, it is regarded as a fast growing live-video streaming service, which has more than 45 million active monthly users and over 1 million members broadcasting gaming videos each month. The acquisition will certainly boost YouTube's presence in the highly competitive market.
Twitch, based in San Francisco, was started in June 2011 by Justin Kan and Emmett Shear, co-founders of Justin.tv. The service allows users broadcast their game-play sessions on PCs, Xbox One or PS4 to spectators in real-time. Twitch, one of the first services to host live streams of gaming videos, is backed by investors, including Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates that raised about $35 million, according to the report.
The startup also forayed into the mobile sector in March by integrating a new feature for gamers to broadcast their game-play sessions from smartphones and tablets.
While neither company responded on the developing story, Twitch's PR director shared a message on Twitter earlier Monday.
For those asking about the story today, Twitch doesn't comment on rumors.
- Chase (@ChasejustChase) May 18, 2014
Variety reports that the announcement will soon be made, but YouTube wants the Justice Department to give the go-ahead for the deal. If the commission feels acquiring Twitch will reduce the competition in the video-streaming field, chances are the deal will be pushed off the table.
