Report: YouTube Is Buying Twitch For $1 Billion

According to “sources familiar with the pact”, Variety is reporting that Google (specifically, YouTube) has already reached a deal to buy game streaming service Twitch. For, oh, $1 billion

UPDATE: The Wall Street Journal disputes this, and claims that while a deal is indeed being worked on, “The talks are at an early stage, and a deal isn’t imminent”.

That’s an insane amount of money, but then, thanks to the growing popularity of streaming – not to mention the fact Twitch has become a key player in the next-gen console marketplace – it might, in the long-run, turn out to be a savvy investment.

Variety reports, however, that it’s not quite a done deal; seems Google’s lawyers are ready for a challenge from the Justice Department on the grounds of competition issues, given the fact that both services are already #1 in their respective fields

https://lastchance.cc/the-internet-reacts-to-google-trying-to-buy-twitch-1578275613%3C/a%3E%3C/p%3E

A recent report from networking company Sandvine says that Twitch has now broken into the top 15 users of bandwidth during peak hours in North America, growing from 0.46% of all “downstream bandwidth” in Fall 2013 to 1.35% by March this year.

It doesn’t take long to envisage the potential pluses in such a deal. Twitch could definitely benefit from YouTube’s tech and reliability. Then again, we have enough trouble with copyright claims on YouTube as it is. Bringing Twitch into that fold could be a nightmare-in-waiting…

We’ve contacted Twitch for comment, and will update if we hear back.

UPDATE (this is Twitch PR):

For those asking about the story today, Twitch doesn't comment on rumors.

— Chase (@ChasejustChase) May 18, 2014

YouTube to Acquire Videogame-Streaming Service Twitch for $1 Billion: Sources [Variety]