Report claims Google-owned YouTube to buy Twitch for $1 billion

If a new report from Variety is correct, Google's YouTube is about to jump into the growing game streaming video business in a big way. The entertainment website claims, via unnamed sources, that YouTube has acquired Twitch for $1 billion in cash.

The report also claims that the deal is expected to be officially revealed by YouTube and Twitch "imminently." If the deal goes through, it will be the single biggest acquisition for YouTube since Google bought the web-based video service for $1.65 billion in 2006.

Twitch was formed in 2011 by the creators behind Justin.tv and has since become the leader in the streaming game video genre. While YouTube also offers a way to stream live events, its service is not set up to service the growing number of gamers who want to broadcast their gameplay skills live on the Internet.

Twitch focused first on the PC gaming market, but in 2013 the company released apps for the Xbox One and PlayStation 4 consoles. The PS4 version allowed users to live stream games from Sony's console, but that ability was not added to the Xbox One version until March of 2014.

Source: Variety | Image via Twitch

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42 Comments

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Haha, guess I'll stop using Twitch. Use it every now and then, can surely enjoy watching a friend play a game. I already try to avoid Youtube cause it has became absolutely horrible to use.
Google (and any massive company) really needs boundaries... they're absorbing everything they want, they can do whatever they want because they have an almost infinite source of money.

I'm getting tired of Google, Apple, MS, Facebook etc just absorbing every company around.
9 out of 10 times, nothing gets improved, users leave or get annoyed, features removed or not updated in favor of their own products.

Very interesting. I run a partnered channel on Youtube, and JUST started doing some Twitch stuff in the last week or so.

I kind of dislike it in some ways but getting partnered on Twitch would be a whole lot easier.

It's the natural course of the companies nowadays.

Today companies tend to absorb little ones to capitalize themselves and get rid of the competition.

I'm not into Twitch and hope this deal doesn't go through (I would rather be the one gaming) but I could see Google using some of this tech to stream playing games from hi end PC games to console games from Sony, Nintendo & Microsoft as a service on a cheap device Google could manufacturer like a $50 device and a $10 monthly subscription and wedge its way in as a leading gaming company pretty much overnight. I could just see them placing ads in between checkpoints or something.

Bad Man Duke said,
I hope this deal gets blocked. YouTube is already dominant enough in online video. We need more competition in this space, not less.

Very good point. YouTube has a monopoly on online video. If this doesn't get blocked, nothing will.

Jose_49 said,
It's the natural course of the companies nowadays.

Today companies tend to absorb little ones to capitalize themselves and get rid of the competition.


That is the natural course since forever. The DotCom Era just "provides" a proper "budget" for those actions

If you are asking that question, then you must not be a gamer.

Shiranui said,
Why would you need to see someone playing LIVE?

You may find it amazing, but gamers have one of the biggest voice in YouTube.

The top subscription channels are from gaming and Twitch it's still on diapers..

Making this move makes sense.

I wonder the exact same thing. I guess that's what the kids are into now. I would be bored out of my mind looking at someone play a game. I can't even look at a replay of someone playing a game.

Deihmos said,
I wonder the exact same thing. I guess that's what the kids are into now. I would be bored out of my mind looking at someone play a game. I can't even look at a replay of someone playing a game.

Replays can be worth watching for hints and tips, etc. I just question the necessity of watching it live. I guess I am getting old?

Yeah, I feel the same way. I mean who would want to watch somebody else play a game that you yourself is not directly playing, and highlights come on who would want to watch highlights of a game over and over. How silly. It is not like watching someone else play football, baseball, tennis, golf, soccer, basketball, or ESPN for highlights, No wait... I guess it is just like watching someone else play those too. :)

Shiranui said,

Replays can be worth watching for hints and tips, etc. I just question the necessity of watching it live. I guess I am getting old?

why do people go to live sporting events? Don't get me wrong I agree with you in principle, but somebody raised a good point that you can see how better players play and learn their tricks and what not and possibly improve your game. So in that respect I can understand it.

But if you want to watch for the hell of watch rather than playing, then I'm with you I don't understand it.

Shiranui said,
Why would you need to see someone playing LIVE?

Billions of people seem to have no problem watching other people play sports, why is it so hard to understand why people watch other people play video games?

When I watch Twitch its the same couple of channels I watch, I know the regulars who like to watch, and enjoy a bit of banter while watching. I use the streams to meet other people to play online with and make new friends online.

McKay said,

Billions of people seem to have no problem watching other people play sports, why is it so hard to understand why people watch other people play video games?

To be honest, I also have a hard time understanding why billions of people find watching other people play sports so compelling.

McKay said,

When I watch Twitch its the same couple of channels I watch, I know the regulars who like to watch, and enjoy a bit of banter while watching. I use the streams to meet other people to play online with and make new friends online.

Fair enough. Looking back on my own misspent youth, I can see certain situations where I might have availed myself of such a service. Perhaps, I'll be watching my son play someday, once his skills improve...

ummm since Xbox One is using twitch to live stream. Be ready 'cuz Google will #### Microsoft up like youtube service again ...

-adrian- said,
Is there no Youtube for the xbox one?

There is, and you can even upload saved gameplay from the Game DVR but GOORGLE WILL #$%%##$%^% MS LAWL

YT could compete against Twitch.. thing is they'd lose. ppl gravitate toward unique niche communities that listen to user feedback. this is when buying your competition comes into play

get ready for copyright smackdown+ android-chrome ONLY features. Oh& google accounts.

"Sorry your browser doesn't support this Twitch feature, Download Google Chrome"

So long Twitch