Youtube wants to buy Twitch for more than $1 billion
According to “sources familiar with the pact”, Youtube is planning to buy the popular video game streaming platform Twitch for more than $1 billion. This rumor surfaced earlier on Variety, a weekly entertainment-trade magazine.
The deal will supposedly be announced very soon and is said to be the most significant acquisition in the history of Youtube. The ever so popular video sharing website was acquired in 2006 by Google for $1.65 billion and is currently run by Susan Wojcicki. She was formerly the internet giant’s Senior Vice President of Ads & Commerce before switching to Yotube earlier this year.
The article mentions that Twitch’s acquisition might be challenged by U.S. regulators. Sources say that this move could be seen as anticompetitive by the Justice Department given the fact that Youtube is already the most popular video sharing platform, . Twitch isn’t that far behind either, and is widely considered as being the number one gaming content streaming website worldwide. A partnership between the two would likely leave any would-be competitors in the dust.
As far as the acquisition by Youtube is concerned, the two companies are keeping quiet for now and no official statement has been issued yet. Twitch PR Director only said on Twitter that “For those asking about the story today, Twitch doesn’t comment on rumors.” Meanwhile, The Wall Street Journal states that “The talks are at an early stage, and a deal isn’t imminent”. They do mention however that a deal between the two company is indeed in the works.
Twitch (also known as Twitch.tv) was founded back in June 2011 by Justin.tv co-founders Justin Kan and Emmett Shear. In just a few short years it became one of the most popular video-streaming platforms around. Back in February, Twitch even managed to rank number four in peak internet traffic, ahead of Hulu, Facebook, Valve, Amazon, and others.