Google and YouTube are Buying Twitch
Google is reported to be expanding its influence over the Internet video world, making another solid purchase. Twitch, one of the most popular videogame-streaming services, is going to be bought by YouTube at a price exceeding $1 billion. Officially the deal has not been announced yet, and neither YouTube nor Twitch representatives give any comments on the alleged acquisition.
Twitch serves more than 45 millions of users and allows them to download and watch live gameplay videos, including such major contests as League of Legends and Dota 2 tournaments. Over one million users get the possibility to stream their videos from Microsoft X-BOX and PlayStation 4 consoles to the channel. Besides videos of individual users, Twitch also has partner deals for streaming shows from CBS Interactive’s GameSpot, Destructoid and Joystiq.
In 2011 the project received $35 million in funding from such investors as Alsop Louie Partners, Bessemer Venture Partners, Draper Associates, Take-Two Interactive Software and WestSummit Capital.
The acquisition is going to be the most significant since Susan Wojcicki became the CEO of YouTube. At the moment we don't know whether Twitch will be gradually consumed by YouTube or remain a separate service, but it is quite likely that the details will be revealed after the news is officially announced.
