Google to Acquire Videogame Streaming Service Twitch for over $1bn
- Sunday, May 18th, 2014
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The deal, first reported by Variety, will cost Google slightly less than the $1.65bn it paid for YouTube in October 2006.
Twitch currently doesnt have a mobile-optimised site, but does offer apps for iOS and Android. It uses a similar ad-funded model to YouTube, paying out a share of ad revenues to its content providers, with the vital difference that they have control over how many commercials air during their stream and from which advertisers.
According to The Verge, Google was one of a few potential buyers for Twitch, including Microsoft, but YouTube was chosen as the best fit for the company. The companies have reportedly agreed on a price and are currently negotiating specfics, most notably whether the Twitch brand will continue to operate independently.