Gaming and video streaming website Twitch has been acquired by Google-owned YouTube for more than $1 billion after buyout offers from several companies, according to a source close to the deal.
The details would be officially announced shortly as the companies are in the final stage of talks regarding the acquisition, according to Variety. A source familiar with the deal mentioned that the companies are still in talks on how independent Twitch company will be and deciding the final price for the buyout. Initially, YouTube and Twitch refused to comment on the acquisition.
Meanwhile, Google has officially released a statement regarding the rumors of Twitch deal, “We don’t comment on rumors or speculation.” When GamesBeat contacted Twitch for the comments, it has also declined to comment. However, still, the Wall Street Journal said that the talks are in its early stage only.
In spite of several buyout offers including Microsoft, Twitch felt that Google’s YouTube will help the company to further grow and can become a solid platform for watching and streaming live video gaming. Twitch, a start-up was launched in 2011 as a live streaming service and raised more than $20 million for investors in 2013.
Twitch was in need of further revenue to revamp its technology infrastructure and wanted a company which can handle live streaming on a massive scale around the world. Twitch garners more traffic to its website than major players like Facebook and Amazon during peak hours.
Last year Marketing VP of Twitch, Matt DiPietro said “To be quite honest, we cant keep up with the growth. That’s a good problem to have”
YouTube is all set to benefit from the acquisition as the live-streaming service YouTube Live was was missing out out on live video game streaming. Latest consoles like PS4, Xbox One, EA Origin’s service and uPlay have been already integrated for live video streaming of their gameplays on Twitch. Twitch has about 45 million unique visitors who spend 13 billion internet minutes on the streaming service and over 1 million users who upload their videos.
If you still think, why Twitch has become a billion dollar acquisition for Google, then you should rethink it after reading the following:
According to a report by Streaming Media Blog, Twitch provided these details in its Keynote at Streaming Media East show in NYC in last week:
- Twitch.tv’s Android and iOS apps have seen more than 10 million downloads already.
- Twitch.tv has close to 50 million unique viewers per month, with over 1 million unique broadcasters per month.
- For a month, over 13 billion minutes of videos had been watched in average for every month.
- In an average, a person watches average of 106 minutes of video per day.
- near to 60 percent of Twitch’s 540,000 average prime time viewers spend more than 20 hours per week in Twitch.
- 68% of Twitch users are said to be watching less television than before.
Stay tuned for more updates on this story. Until we bring a new update on the Google-Twitch deal, post your opinions in the comments form below.
[ Via ]