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Google set for $1 billion Twitch acquisition

Google is said to be in talks to purchase video streaming service Twitch for $1 billion.

Twitch is currently the big name in live video streaming, particularly in the realm of video games, but has been looking at ways to cope with its massive growth. It seems as if a partnership with video giant YouTube (which of course Google also owns) will provide the infrastructure and know-how Twitch needs.

That’s according to several reports emerging from America, at least. Both Variety and The Wall Street Journal are carrying reports that the deal is likely to take place.

While the former claims that a deal is imminent, however, the latter source believes that the two companies are still involved in talks.

It seems as if the above price may have been agreed. According to The Verge, though, the two companies are now thrashing out terms such as how independent the Twitch brand will remain.

This latter point could be crucial to its ongoing success, as Twitch has become the go-to video sharing and broadcasting service for PS4 and Xbox One gamers. The tight integration of Twitch into Sony’s popular console could be one reason why Twitch is said to have rejected a similar acquisition offer from Microsoft.

YouTube, of course, has its own live broadcasting element, but it has proved to be nowhere near as successful as Twitch. What’s more, Twitch users tend to be more engaged, on average, than YouTube viewers, which means that they spend more time watching events.

This would appeal to YouTube and its advertising-led model more than anything.

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