You Tube Looking to Acquire Twitch
In an article out just 21 minutes ago on Variety it looks like You Tube has reached an agreement to purchase Twitch.
From the article:
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.
The article goes on to say Google expects a push back from U.S. regulators.
Read the full story here
Good for them. The market is there. On top on this is the Professional Gaming market, or MLG (major league gaming). Very big in China.
There was an article I read a while back that highlighted pro gamers making $75k-mid 6 figures a year playing/live streaming video games. Good stuff.
YouTube has dabbled in the live streaming arena for games, but hasn’t had nearly the success of Twitch. So YouTube thought when you can’t compete with best, just acquire the best. Wow!