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UPDATE: Microsoft lost out to Google in race to buy Twitch for $1 billion – rumour

Monday, 19th May 2014 09:21 GMT By Brenna Hillier

Word on the virtual street is Google is set to acquire Twitch for a cool $1 billion, after Microsoft proposed an unsuccessful bid for the streaming service.

twitch

UPDATE 2: Joystiq is reporting that The Wall Street Journal [paywall] is now citing an anonymous source close to the deal that says that negotiations are “at an early stage, and a deal isn’t imminent.” Which is contradictory to the previous report.

We will update this story as it develops.

UPDATE: A source speaking with The Verge has claimed that Microsoft was in the running to buy Twitch at one point, but ultimately the streaming company sided with YouTube because it was a better fit.

The source adds that YouTube was better-aligned to help Twitch realise its long term ambitions, and that it would have rejected a billion dollar bid from any other firm.

Both Google and Twitch are said to be negotiating final terms now, including the issue of Twitch’s independence and retaining its brand post-deal. We’ll update again when we hear more.

ORIGINAL STORY: The rumour comes via Variety, which cites “sources familiar with the pact” to claim the deal has been signed and sealed.

What’s particularly interesting about the rumour is that it’s not being talked about in terms of “Google buys Twitch” but “YouTube buys Twitch”. Obviously the two businesses have a lot of synergy, but the fact that the YouTube brand is being bandied about may hint at what Google intends for the service; perhaps Twitch will be rolled into YouTube rather than run as a separate service…?

With Twitch and YouTube under its belt, Google would have the online video market stitched up. The company is apparently already planning its defence for when US regulators ask pointed questions about anticompetitive practices.

Twitch was founded in 2011 by Justin.TV co-founders Justin Kan and Emmett Shear. It raised $35 million in startup funding. If you’re wondering why Google would fork out so much money for something it can already do via YouTube, get this – Twitch is the biggest streaming service in the world.

YouTube has never made an acquisition of this size. Google bought the video site for $1.65 billion in 2006 – how time flies, et cetera – and apparently intends to pay cash for Twitch.

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15 Comments

  1. Tiucaner

    Bloody hell if this is true….

    #1 7 months ago
  2. Obernox

    Whoa…

    #2 7 months ago
  3. Sciva

    I can’t wait for the layout to change every month.

    #3 7 months ago
  4. Kabby

    Incoming blanket stream removals because of ContentID and Copyright issues.

    #4 7 months ago
  5. Erthazus

    Please no.

    this is going to be a disaster. Gaming best streaming service will be full of dudebros and youtube assholes.

    After Xone and PS4 it is already a fest of porn videos, kids and dudebros.

    #5 7 months ago
  6. eathdemon

    Everyone knew twitch was going to be bought, it was just a matter of who. the three choices are Google, MS, Amazon., or Facebook.

    PS for everyone who said they would have rather had Google buy the rift, this is you chance to prove it..

    #6 7 months ago
  7. Visualift

    @eathdemon Well… seeing as Google owns YouTube…

    #7 7 months ago
  8. BrokenSpline

    @Erthazus

    Something says you haven’t been on Twitch during a big event because I see that shit no matter who is provider. Its called the internet.

    #8 7 months ago
  9. The_Red

    And thus, the nightmare spread everywhere.
    Some called it the plague.
    Others, the black death.
    Of course no matter what you call it, the ContentID proved to be unstoppable.
    It consumed all video streaming and playing sites until nothing was left but copyright warnings among Google’s massive dump on the faces of very people that helped with its rise to absolute power.

    #9 7 months ago
  10. NocturnalB

    @Kabby That was my first thought as well. If this is true, it seriously blows.

    #10 7 months ago
  11. Joe Musashi

    YouTube’s allowance of the bullish contentID enforcement is a bit of a black-mark. But, that said, they should be aware that Twitch’s focus in on game content and going into this with their eyes open.

    Twitch’s own 20-second stream delay seems to take care of any potential upsets that may occur.

    That said, Twitch’s maverick approach to moderation and double-standards could do with being addressed and, I imagine, this [potential] transition may deal with that anomaly.

    Please don’t mess with the AGDQ and SGDQ marathons though! I love them to pieces!

    JM

    #11 7 months ago
  12. Luciferous

    I would rather Google have them than Microsoft have them, better tech without forcing console exclusivity.

    #12 7 months ago
  13. Visali

    So ads are coming.

    #13 7 months ago
  14. Legendaryboss

    Oh no.

    #14 7 months ago
  15. wally10975

    To all who are complaining of Google’s practices for this acquisition. Google is working out an agreement to make this work, and to not infringe on existing copyrights. If they have to, they will change procedure to make this work. This has always been Twitch’s long term goal: Build up a huge user base, then sell to Google at massive value.

    #15 7 months ago

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