YouTube reportedly in talks to buy video game streaming service Twitch for $1bn
Google is reportedly in talks to buy Twitch, a videogame streaming service with more than 45 million monthly users, several US publications have reported.
The acquisition would be made through YouTube, which Google acquired in 2006 for $1.65 billion, and would be the most significant purchase the video platform has made to date.
Citing sources “familiar with the pact,” Variety reports that Google has already “reached a deal” to buy Twitch “for more than $1 billion,” while the Wall Street Journal says that “talks are at an early stage” and that “the potential purchase price couldn’t be learned.”
Twitch, which launched in June 2011, has become the most popular service for broadcasting and watching videogames, even supplanting YouTube in terms of live-streaming traffic.
Online video and networking firm Qwilt reported that in the week ending April 7 Twitch accounted for 44 per cent of all live-streaming traffic in the US. The San Francisco-based start-up has also signed deals with both Sony and Microsoft to provide live-streaming services on the PS4 and Xbox One consoles.
A screenshot showing a game of League of Legends being live-streamed (with the player in the bottom right) using Twitch.
Read more: Twitch plays Pokémon is beautiful chaos
For Google, Twitch could provide a lucrative new stream of ad revenue, attracting a predominantly young audience that consumes content over long sessions, often hours at a time. This compares favourably to the three-minute slices of video more commonly watched on YouTube.
Gaming has also proved to be a natural fit for an internet-savvy audience, with YouTube’s most subscribed channel, PewDiePie, offering video game commentary from 24-year old Swede Felix Kjellberg. More than 26 million YouTube users subscribe to Kjellberg’s channel, generating just under 300 million views in April alone.
Twitch, which used 1.35 per cent of all downstream bandwidth in North America in March 2014, was spun out of Justin.tv, one of the earliest video broadcasting sites online. In September 2013 Twitch earned $20 million from investors.
Life & Style blogs
Who is Teresa Fidalgo? Debunking the fake ghost story that's got Instagram spooked
Paris Fashion Week: Skirting the issue for the stylish boys' brigade
Losing appetite as you age? Try adding umami flavour to restore the 'joy of taste'
The enemy within: People who hear voices in their heads are being encouraged to talk back
Miss Universe 2015: A beefeater, a yellow tree and an entire hockey game - the bizarre national costumes
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
- 1 Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 The enemy within: People who hear voices in their heads are being encouraged to talk back
iJobs Gadgets & Tech
£21000 - £25000 per annum: Recruitment Genius: A smart software company locate...
£35000 - £45000 per annum + benefits: Ashdown Group: IT Support Analyst - Wes...
£30000 - £40000 per annum + benefits: Ashdown Group: Junior Web Developer - ne...
£25000 - £55000 per annum: Recruitment Genius: Based in Henley-on-Thames, this...