YouTube is reportedly going to acquire the video game streaming platform Twitch for a huge amount of over $1 billion.
YouTube is said to reach a deal to acquire Twitch. Some source familiar with acquisition deal told Variety that "YouTube has reached a deal to buy Twitch."
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Twitch is a video game streaming service provider firm. It is a San Francisco-based firm. Justin TV co-founders, Justin Kan and Emmett Shear, launched Twitch in June 2011. And it raised $35 million in funding then. Shear is its current CEO.
Twitch provides its users the facility to upload and watch live game play videos free. Twitch users can stream these videos from Xbox and PS 4 gaming consoles.
Twitch also distributes content from its partners including CBS Interactive’s GameSpot, Joystiq and Destructoid. And the company says that it has 1 million members worldwide that upload videos each month. And the number of its total monthly users is now above 45 million.
Google's YouTube now wants to take full control on its streaming services and user base. YouTube is said to nab Twitch in an all all-cash deal that "is expected to be announced imminently."
Google acquired YouTube for $1.65 billion in 2006. And now YouTube reportedly wants to buy Twitch for more than $1 billion. It will be a big acquisition for YouTube if the deal will be completed.
This acquisition deal between YouTube and Twitch was reported for the first time few months ago when Google's ad exec Susan Wojcicki was appointed as CEO of YouTube.
Sources also claim that YouTube is currently "preparing for U.S. regulators to challenge the Twitch deal." YouTube is the #1 video sharing platform on the net. Its user base has now reached over 1 billion users worldwide.
YouTube provides more than 6 billion hours of video on monthly basis to its users. YouTube "expects the Justice Department to take a hard look at whether buying Twitch raises anticompetitive issues in the online-video market."
The representatives of both YouTube and Twitch have declined to comment on the acquisition deal.