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Reports Suggest Google Planning Acqusition of Twitch for $1 Billion

Over the weekend, a report from Variety suggested that Google was in the final stages to announce plans to buy video game streaming service Twitch for roughly $1 billion. A separate report from the Wall Street Journal, who must have much different sources, claims that the deal is still early, and that Twitch may decline whatever offer is made, opting for additional funding instead of selling off the company to Google. 

For those not familiar with Twitch, it is a streaming website service that launched in 2011, but has grown exponentially. It single-handedly accounted for 1.35% of all downstream bandwidth usage in March of 2014. As big as YouTube has become at video sharing, they never seemed to get their finger on streaming, and that is where they hope Twitch can help.

The reported all-cash deal is expected to be announced sooner, rather than later, according to Variety. However, YouTube and Twitch are reportedly preparing to fight for the deal, as they expect US regulators will have something to say about the #1 video content site acquiring the #1 video streaming site. From the WSJ sources, who paint a much different picture, the public may never learn the actual value of the deal, and a lot of talks must be completed before anything official is announced. No YouTube or Twitch representatives have commented on the deal.

Only time will tell if this deal will benefit the consumers to all of this online content. Twitch has a fairly well-established monetization strategy with their channels, and we can only assume Google won’t mess with that.

What do you think? If Google does end up purchasing Twitch, is this good or bad for the young company?

Via: Variety | WSJ
  • Daeshaun Griffiths

    I thought about this for awhile, and google+ needs a privacy setting for an alias. We need gamertags/nicknames.

  • Justin W

    IMO, if the government approves Comcast+TWC and AT&T+DirecTV, then this shouldn’t be a problem as there are actually other competitors in the ring still.

  • dsignori

    Good news. Love Google, love Twitch. I hope it happens.

  • Lakerfan

    if it means twitch will finally get native chromecast support then I’m all for it…

  • Arty McBert

    Oh great, another video service for Google to force their failed social networking platform upon, strict DMCA policies and ads on everything. I suspect this purchase will absorb Twitch into YouTube so that Google could improve their hangouts live stream.

  • braahp

    i personally think this would be a good thing. Google is a monster of a company forever expanding and reaching out to new lengths to better itself every day.

  • This is one thing I wish Google would stay out of. They will kill it, and not in a good way. I have a feeling if this goes through a lot of features like the streamers partnership would disappear.

  • PuttsMoBilesiCit

    No, just No. This would be a terrible choice for Twitch. Google/YouTube is everything Twitch is against.

    Copy write infringement if you play any music or anything. Not to mention YouTube’s non-existent support…

    • Tyrone_83

      I think if you have your stream or something in archives that should be fine. I’m asking around about that also but i’m not getting a solid answer.

    • michael arazan

      They have great support, if it’s deleting copyright material, just reporting something is in violations will have it deleted whether it is true or not.

  • Omar Amer

    Twitch desperately needs additional funding to get better hardware and establish more server sites. Dont really agree with copyright enforcement on twitch, but right now they need money so the site can perform the way they intended it to.

  • Ben Murphy

    I still remember the day Google acquired YouTube. That was in the news for months. Smart purchase.

  • The Narrator

    So now Twitch will have Google + integration. /s

    • Tyrone_83

      i think Google already learned a lesson in trying to force Google+ on people. I highly doubt they will try something like this again.