Google’s YouTube buys Twitch for $1 Billion

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UPDATE:
Google has reached a deal to buy game livestreaming firm Twitch for $1 billion, according to sources familiar with the matter.

We don’t know everything about this deal, such as when it will be announced and the exact purchase price. We do know that investors who participated in past rounds are pleased that they will be getting significant returns that are multiple times the amount they originally invested. The deal underscores the value of live Internet streaming and the rise of competitive gaming as a spectator sport — something that draws millions of viewers, can offer prize pools that surpass pro golf’s marquee events, and provides a multibillion dollar opportunity for advertisers.

Google and Twitch declined comment. Both companies happen to be speaking at our GamesBeat 2014 event in September. This deal was first cited by unnamed sources from Variety said back in May that Google had made an all-cash offer and that the deal could be announced soon.

Google’s YouTube division is reportedly in charge of the acquisition, which would represent a significant transformation of YouTube’s business. Google acquired YouTube in 2006 for $1.65 billion.

San Francisco-based Twitch enables people to broadcast their own gameplay sessions on the PC, Xbox One, or PlayStation 4 to online viewers. It enables both competitive gamers and average players to gain fleeting fame by entertaining those spectators, who sometimes number in the millions. In March, Twitch represented 1.35 percent of all Internet traffic, according to Sandvine.

Twitch has more than 50 million monthly active users and more than 1.1 million members who broadcast videos each month. Back in June 2011, Twitch had just 3.2 million monthly active users. Twitch also distributes shows from partners including CBS Interactive’s GameSpot, Joystiq, and Destructoid, all gaming-news sites. More than 13 billion minutes of video are watched per month on Twitch.

YouTube is the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide. But most of those videos are uploaded.

Twitch began in June 2011 by Justin Kan and Emmett Shear, cofounders of Justin.tv. The site was one of the first to host livestreams, or real-time videos of something that was happening at that moment. Shear is still CEO of Twitch.

Twitch has raised about $35 million from Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital, and Draper Associates.

http://venturebeat.com/2014/07/24/g...confirmed-joins-youtube-for-new-video-empire/
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YouTube to Acquire Videogame-Streaming Service Twitch for $1 Billion: Sources

twitch-to-livestream-the-e3-event.jpg


Deal would be biggest ever for YouTube

MAY 18, 2014 | 03:25PM PT Todd Spangler NY Digital Editor

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.

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.


YouTube to Acquire Videogame-Streaming Service Twitch for $1 Billion: Sources | Variety
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:lupe:
 
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itsyoung!!

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Report: YouTube Is Buying Twitch For $1 Billion

According to "sources familiar with the pact", Variety is reporting that Google (specifically, YouTube) has already reached a deal to buy game streaming service Twitch. For, oh, $1 billion.P

That's an insane amount of money, but then, thanks to the growing popularity of streaming - not to mention the fact Twitch has become a key player in the next-gen console marketplace - it might, in the long-run, turn out to be a savvy investment.P

Variety reports, however, that it's not quite a done deal; seems Google's lawyers are ready for a challenge from the Justice Department on the grounds of competition issues, given the fact that both services are already #1 in their respective fields.P

A recent report from networking company Sandvine says that Twitch has now broken into the top 15 users of bandwidth during peak hours in North America, growing from 0.46% of all "downstream bandwidth" in Fall 2013 to 1.35% by March this year.P

It doesn't take long to envisage the potential pluses in such a deal. Twitch could definitely benefit from YouTube's tech and reliability. Then again, we have enough trouble with copyright claims on YouTube as it is. Bringing Twitch into that fold could be a nightmare-in-waiting...P

We've contacted Twitch for comment, and will update if we hear back.
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L

Liquid

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I hope this doesn't fukk up people streaming video games online similar to how showing video games has been fukked up on YouTube.
 
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