Google’s Purchase of Twitch Reportedly Confirmed

Google's Purchase of Twitch Confirmed

Google has finally signed a deal to purchase live-streaming service Twitch for $1 billion, according to a VentureBeat report that cites anonymous sources

Rumors about the deal began surfacing in May, but at that time discussions were still said to be “at an early stage” by the Wall Street Journal.

The deal is being handled by Google’s YouTube division, and comes just weeks after obvious signs of collaboration between the two platforms. In June, Twitch announced a feature that would allow broadcasters to promote their streams through the use of an annotation automatically added to all of their existing YouTube videos whenever they begin streaming.

Twitch enables video game players to broadcast their experiences and provide commentary in real-time. Integrated social features also allow for two-way communication between the broadcaster and their audience. Users that are invited to join the Twitch Partner Program unlock additional opportunities, allowing them to monetize their streams through the use of paid subscriptions and “commercial breaks”. The service also features an archive functionality, giving those with a YouTube channel the ability to select portions of past streams and piece them together in a “highlight reel” that can then be uploaded to YouTube and monetized, creating an additional revenue-earning opportunity.

This wouldn’t be the first time that Google has purchased an industry-leading company. Google bought YouTube, which now receives over 1 billion unique visitors every month, from its original co-founders in 2006 for $1.65 billion. Twitch is currently leading the live-streaming industry with over 1 million broadcasters and 45 million visitors every month. Regulators may be prepared to challenge the acquisition, with concerns being raised about the internet giant owning two number-one entities that both involve online video.

Representatives from both Google and Twitch have declined to comment on the deal at this time.