Google’s YouTube has agreed to buy videogame streaming specialist Twitch for more than USD 1 billion in cash, Variety reported, citing sources familiar with the matter. The deal is expected to be announced imminently.
If completed, the acquisition will be the most significant in the history of YouTube, which Google acquired in 2006 for USD 1.65 billion. Both YouTube and Twitch declined to comment but the report added that YouTube is preparing for US regulators to challenge the Twitch deal on anti-competitive issues in the online-video market.
San Francisco-based Twitch lets users upload and watch free, live gameplay videos that can be streamed from Microsoft Xbox and PlayStation 4 consoles. The company claims to have more than 45 million monthly users, with more than 1 million members who upload videos each month. It also has deals to distribute shows from partners including CBS Interactive’s GameSpot, Joystiq and Destructoid.
Twitch was launched in June 2011 by Justin Kan and Emmett Shear, co-founders of Justin.tv, one of the first websites to host livestreaming user-generated video. Shear currently serves as CEO of Twitch. The startup has raised about USD 35 million in funding to date. Investors include Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates.
