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 and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Ashdown Group: Front-End Developer - London - up to £40,000

    £35000 - £40000 per annum: Ashdown Group: Creative Front-End Developer - Claph...

    Ashdown Group: QA Tester - London - £30,000

    £28000 - £30000 per annum: Ashdown Group: QA Tester - London - £30,000 QA Tes...

    Ashdown Group: Linux Administrator - London - £50,000

    £45000 - £50000 per annum + bonus: Ashdown Group: Linux Systems Administrator ...

    Ashdown Group: Business Intelligence Analyst - London - £45,000

    £40000 - £45000 per annum: Ashdown Group: SQL Server Reporting Analyst (Busine...

    Day In a Page

    The difference between America and Israel? There isn’t one

    The difference between America and Israel? There isn’t one

    Netanyahu knows he can get away with anything in America, says Robert Fisk
    Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

    David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

    The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
    With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

    Money, corruption and drugs

    The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
    America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

    150 years after it was outlawed...

    ... America's first slavery museum is established in Louisiana
    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
    Tony Oursler on exploring our uneasy relationship with technology with his new show

    You won't believe your eyes

    Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
    War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

    The battle for Mosul will unleash 'a million refugees'

    Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
    Yvette Cooper: We can't lose the election. There's too much on the line

    Yvette Cooper: We can't lose the election. There's too much on the line

    The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
    A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

    It's not easy being Green

    After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
    Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

    Gorillas nearly missed

    BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
    Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

    The Downton Abbey effect

    Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
    China's wild panda numbers have increased by 17% since 2003, new census reveals

    China's wild panda numbers on the up

    New census reveals 17% since 2003
    Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

    Our woman in Beijing builds a new relationship

    Britain's first female ambassador to China intends to forge strong links with growing economic power
    Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

    Courage is rare. True humility is even rarer

    Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor