New report claims Twitch will choose Google buyout offer over Microsoft

Late on Sunday, Variety first reported rumors of an upcoming buyout of the game streaming video service Twitch by the Google-owned YouTube. Now a report from The Verge not only corroborates Variety's story but also reports that it had rejected serious offers from other companies, including Microsoft.

The Verge's story, citing unnamed sources, claims that Twitch could have raised more money via venture capital sources. However, the company was really looking for a partner to help deal with its massive growth in both users and in bandwidth. Indeed, a recent report from the cloud infrastructure company DeepField claims that Twitch is the fourth biggest source of Internet traffic in the U.S. during peak hours, behind Netflix, Google and Apple and ahead of Amazon and Facebook.

The story also claimed that while Microsoft may have put a serious offer on the table to buy Twitch, the company decided that an acquisition with YouTube would be a better match for what it wanted to do next with the business.

As of this writing, the deal has yet to be officially announced, but The Verge claims Twitch has agreed on a offer and are now just trying to negotiate with Google on how much freedom it will have in this new set up.

Source: The Verge | Image via Microsoft

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26 Comments

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WOW, was I totally confused. I had no idea what TWITCH Even was. I didn't read much of the articles. All I saw was "Streaming Video games" .. I thought it was like Onlive. But now I find out it's just for watching people play video games. Oh this country is going to crap.

With the way MS has been moving with software, I would much rather see them own it than Google. MS is much more willing to support all platforms, even competitors, with their services.

Agree, but the way that MS can stop this is to cry foul to FTC, which to be honest, I can see the possible potential of it being blocked.

RommelS said,
Agree, but the way that MS can stop this is to cry foul to FTC, which to be honest, I can see the possible potential of it being blocked.


True. Google has been on the radar of groups like the FTC a lot lately, so it would not shock me to see this blocked if enough groups protested.

A very selective "all platforms" then if you ask me. Like BlackBerry's BBM being available "for all platforms" (where "all" means BlackBerry, Android and iOS - missing Windows Phone, Sailfish OS, Nokia Asha. S40, desktop clients, etc).

I don't see why this needs to be acquired at all honestly. But I don't use it so I'm probably just missing something. Not everything under the sun needs to be acquired. As an entrepreneur, I think it's killing the culture and all I'm seeing anymore is companies starting up with their exit strategy being to get acquired. End rant.

scumdogmillionaire said,
I don't see why this needs to be acquired at all honestly. But I don't use it so I'm probably just missing something.

It's called a money grab and/or selling out.. Many of these ventures get started with the hopes and plans of being scooped up at a future date for a lot of money.

paulheu said,

It's called a money grab and/or selling out.. Many of these ventures get started with the hopes and plans of being scooped up at a future date for a lot of money.

But why must Google, or Microsoft for that matter, have it? What value is it brining to their overall strategy? I just don't get it.

The only value is brings in is preventing the competition having it though acquisition. It's just a strategic purchase.

If I were Twitch I would not automatically think that joining YouTube will do anything more then swallow the brand over time. There is not enough product separation to support both independently over time.

This has been going on for some time. I've always suspected that Zuckerburg started his wee project with that aim, just never got an offer good enough ;)

I guess Microsoft could build their own streaming service (Xbox Stream?) if their relationship with Twitch gets worse after the deal. But they would have to be quick and support other platforms besides PC and Xbox, like the Playstation 4 and mobile.

They could call it Xbox Live LIVE
lol

but seriously its not about building streaming into Xbox, its about building a service that can stream games on almost any platform back to a singular spot

It's more than just streaming though. Microsoft would have to get behind eSports in a big way if they launch their own service. Steve Ballmer could be an announcer.

Freedom.. from Google? laughable, Look at how YT ended up. No I'm not talking eyeballs on, YT is a massive video and advertising monolopy I'm talking about the site, service, its UI. its failed attempt in ramming G+ down users throats and having us use our real names

dingl_ said,
Freedom.. from Google? laughable, Look at how YT ended up. No I'm not talking eyeballs on, YT is a massive video and advertising monolopy I'm talking about the site, service, its UI. its failed attempt in ramming G+ down users throats and having us use our real names

Google = Skynet