Deal would be biggest ever for YouTube
Google’s YouTube has reached a deal to buy Twitch, a popular videogame-streaming company, for more than $1 billion, according to sources familiar with the pact.
The deal, in an all-cash offer, is expected to be announced imminently, sources said. If completed the acquisition would be the most significant in the history of YouTube, which Google acquired in 2006 for $1.65 billion. The impending acquisition comes after longtime Google ad exec Susan Wojcicki was named CEO of YouTube earlier this year.
Reps for YouTube and Twitch declined to comment.
San Francisco-based Twitch lets users upload and watch free, live gameplay videos that can be streamed from Microsoft Xbox and PlayStation 4 consoles. The company claims to have more than 45 million monthly users, with more than 1 million members who upload videos each month. It also has deals to distribute shows from partners including CBS Interactive’s GameSpot, Joystiq and Destructoid.
SEE ALSO: Major League Gaming, Twitch Compete to Become the ESPN of Videogames
YouTube is preparing for U.S. regulators to challenge the Twitch deal, according to sources. YouTube is far and away the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide, and the company expects the Justice Department to take a hard look at whether buying Twitch raises anticompetitive issues in the online-video market.
Twitch was launched in June 2011 by Justin Kan and Emmett Shear, co-founders of Justin.tv, one of the first websites to host livestreaming user-generated video. Shear currently serves as CEO of Twitch.
Founded in 2011, the startup has raised about $35 million in funding. Investors include Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates.
One of Twitch’s competitors is Major League Gaming, a New York-based company whose investors include Oak Investment Partners and Relativity Media CEO Ryan Cavanaugh.
In March 2014, Twitch represented 1.35% of all downstream bandwidth on North American fixed-access broadband networks — nearly triple from last fall, according to bandwidth-equipment company Sandvine.
I think there should be an intervention for Cyber Law.
In the non-virtual world, monopolizing a trade or industry is prohibited to try to maintain a competitive market.
“United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers.” – Wiki
Big oil companies back in the early days of America would get so big that they could literally control the market price of the oil that they were selling because they owned the majority of the consumer confidence. Everywhere you look is Google this, Google that. Hey, you don’t know something? “GOOGLE” IT
With the exponential growth of the internet and its vast capabilities changing every day, who knows how big Google will be in 25 years; heck, even 5 years?
Don’t get me wrong anybodywhocarestoreadthis, I’m all about capitalism and enterprise. If I had 5 grand to spend freely, I would do so much with it. But really, Google is just getting incredibly large. Being one of the most profitable grossing entity in the world, all of the best go to them: the best web developers, the best web designers, the best programmers. They come crawling from across the world to make Google stronger (or more like get a piece of that $28.5 billion net worth pie [Forbes 2014]). I mean they made “microsoft office” free by the formation of Google Drive. They don’t charge the user a damn penny. Think about it.
While creating a virtually perfect UI, the most advanced mobile operating system to date, and an incredible amount of available resources for free, Google is taking the world by storm… and quite honestly, it’s frightening. I can only hope that Google hits some sort of limit before it turns into the modern day Skynet.
DansGame PJSalt
If this is true, Google, Why can’t you use that $1 billion to buy the FCCs votes for Net Neutrality? :|
literally killing e-sports BibleThump
DAMNIT! We thought we could escape the tyranny of YouTube with Twitch. For too long, Google has been screwing over people who makeYouTube content for a profession, and now they buy the only competitor!
Are people making money from streaming video games on Google+ Hangouts already?
BibleThump
Google!? No more bandwidth limits hopefully!?
What do you mean bandwidth limits? I can understand the up coming Net Neutrality murder and telecom data caps, but I don’t recall Twitch having bandwidth limits.
Kappa= Grey Face (no space
Reblogged this on Tristan on WordPress.
This is great news! TWITCH is about blow up!
This is going to be the best thing ever! Kappa
I can already see it..
“You must be a google+ member to use the chat”
. ~.~ *face palms*
this is my worry.
Google already said they’re done with pushing G+ integration.
MLG is no competitor, they don’t even deliver the same service, in fact MLG USES twitch to stream their events. Hmmm, looks like more scratch the surface journalism from a halfwit reading from a press release. DO SOME ACTUAL FUCKING RESEARCH BEFORE YOU WRITE A STORY!
MLG.tv is actually a completely separate platform and isn’t run through Twitch.
I’m going to kill my self bye.
Great article, and very interesting about the acquisition by YouTube, but I would like to add a note.
The comment “San Francisco-based Twitch lets users upload and watch free, live gameplay videos that can be streamed from Microsoft Xbox and PlayStation 4 consoles.” is a little misleading and narrow considering most of the streaming still comes from PC streamers, as well as many other platforms. The PS4 and XB1 were only added when the consoles came out late last year.
Can be, but not limited to*.
Kappa
well shit
Please no..
This is just bad, I won’t use twitch any more.
320 blaze it fgt. Pyah.
Dont Do this shit twitch u can reach more money if u dont soll IT… Please dont
Google may take our freedom, but they’ll never take… OUR KAPPA!
But where’s the real source that they bought/are buying it? Only sources here are unimportant links.
NO! WE DON’T NEED THIS!
Rest in peace, Twitch! If this is true, I will cry myself to sleep every night.
april fools’ plssssssssssssssssss u.u
No deal or riot!
We need to start a collection for 2 Billion. If YouTube buys Twitch, say good buy to monetization.
twitch is using Google Adsense (Google) for monetization. Nothing will change. Probably more traffic for twitch streamers.
Maybe they will fix lagging europe servers…
lirikThump
bus story please chunce
chinguen a su madre entonces ya no habrá eurotruck cumbiero?
Google, I kindly ask you to go fuck yourself. If this happens I’m pissed…PLEASE let this be a troll…
SwiftRage
Welp, looks like the Illuminati may have won this battle…BUT NOW THE WAR!!!
#LongLiveTwitchTV
#DownWithGoogle+
#DownWithSkynet
#DownWithTheIlluminati
#WakeUpSheep
[citation needed]
FailFish
Major League Gaming is no threat. They have had so many opportunities to become successful and they’ve failed every single time due to the egotistical CEO, Sundance DiGiovanni.
please god no
yo bullshite
LARRRRRRRRRRRRRY
I swear, if Google try’s to push this Google+ crap onto Twitch streamers, I’m gonna lose it.
Indeed, Google is still on the first stage of grief over Google+, Denial.
I call Bullshit
RIP
Google can blow big hairy elephant dick.
Yes
BibleThump
Hello copyright on twtich!
RIP Lirik I will miss.
Confirmed for fake.
In before buffering gets even worse danBad
Lirik —–> Youtuber
shitty article is shitty