Posted on May 19, 2014, Ron Whitaker YouTube May Be Preparing to Buy Twitch
According to rumors, YouTube has reached an agreement to buy Twitch.tv for over $1 billion.
The deal was outed in an article on Variety, which cited, “sources familiar with the pact.” The purchase, which is reported to be an all-cash offer, is expected to be announced at any time.
Twitch is reportedly expecting US regulators to look closely at the deal, as it certainly could have anticompetitive issues in the world of online video. Twitch currently claims 45 million monthly users, and over one million monthly uploaders.
An article on The Wall Street Journal’s website characterizes the deal a bit differently. Rather than saying the deal is imminent, they describe it as being at an early stage. The Journal also says that Twitch is considering an additional round of funding instead of selling the company.
The future of Twitch is something that’s worth any gamer keeping an eye on. The service has become a mainstay in many gaming communities, including ours (Yes, GameFront has a Twitch channel). While it’s unlikely that YouTube would change much about Twitch in the event of an acquisition, the content ID mess that hit gaming videos in December has to make you wonder how YouTUbe would reconcile its stance there with the gameplay streaming on Twitch.
We’ll have more on this story as it develops.