Twitch Rumored To Be Acquired By YouTube.
According to a variety of, YouTube is set in motion on acquiring Twitch in an all-cash deal that’s worth up to $1 billion. Reports have claimed that these source are close to the situation stated that a deal is imminent with YouTube beginning the process of alerting federal regulators about this proposed deal.
Regulators may be opposed a deal due to the merging of two companies who are in “competition” with one another. After being previously purchased by Google during 2006 for up to $1.65 billion, YouTube has yet to respond to these rumors from reports but according to other reports, the deal is not as imminent as most people seems to believe.
Other new sites have reported that the two people close to this story and the negotiations have stated that talks about an sale that is “at an early stage” and that “a deal isn’t imminent” as no purchase price mentioned from he sources themselves. Lastly, There has been no mention on whether Justin.Tv would become a part of this recent supposed dealing after Kan and Shear changed the name of the parent company to Twitch Interactive.
According to a source, Twitch has also begun to search for ways into obtaining additional source of revenue for the company instead of selling the company. When Twitch first launched in 2011, they secured a total of $20 million from investors such as Thrive Capital and Take-Two interactive. While YouTube does contain a live streaming service for video games like Twitch, utilizing the service such as Twitch would help them in the video game market. Twitch averages more than 45 million visitors a month and accounted for nearly 44% of U.S. live-streaming traffic during the week of April April 7th.
Launched in 2011, Twitch.tv was created by Justin.tv founder Junstin Kan and Emmett Shear, in order to focus more on live stream for video games. Those gaming stream and eSports broadcast have become the backbone of the service, which went over one million broadcaster during much earlier in the year. The even managed to strike a deal between Sony and Microsoft to broadcast games from their company’s respective consoles, the Playstation 4 and Xbox One, in order to allow user to upload videos on Twitch from their systems.