Youtube reportedly acquiring Twitch for $1 billion

19 May 2014  by   Paul Younger
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The latest big spend in the world of gaming could involve the popular streaming channel Twitch.tv.

The news just broke this evening with the two companies apparently reaching a deal with Youtube to acquire the service for $1 billion in an all-cash offer. There has been no official announcement yet from either paries but the deal will apparently close “imminently”.

Youtube has not managed to capture the live streaming audience so this acquisition would bolster Youtube and Google’s video offerings. Google acquired Youtube back in 2006 for $1.65 billion after it’s own video service failed to catch on.

Today’s acquisition news has yet to be confirmed after the story broke on Variety as both Youtube and Twitch have declined to comment on the potential deal.

It might not be easy to squeeze the deal through as the U.S. regulators may challenge the deal on anticompetitive issues as it would firmly place the most popular video content for streaming and video on the Internet with a single company.

Twitch has become the main destination for gamers to stream their content and it’s a mixed bag of the good and downright terrible. Gamers earn a money from the ads that are displayed during the stream so the more viewers they have the higher the potential revenue. You just have to sift through the rubbish to find the good stuff.

It will also be interesting to see how Google/Youtube will handle copyright should they acquire Twitch following the problems highlighted by Youtube users back in December when videos were being removed for copyright infringement. Then there’s also the issue of Youtube users being paid to say positive things about games from publishers. A lot could potentially change at Twitch depending on what happens with a deal should it go through.

Just so you’re clear. this is still being filed under “rumour” and this comment from Twitch reiterates that for now.

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