Google Inc (GOOGL): YouTube reportedly acquiring Twitch for $1 billion

Posted May 19, 2014

Google Inc (NASDAQ:GOOGL) subsidiary YouTube has apparently reached a deal to acquire video-game streaming company Twitch for over $1 billion. Twitch lets Xbox and PlayStation 4 gamers live-stream their gameplay to thousands of viewers at the same time. Recently, over 1 million people teamed up on Twitch to beat a Pokemon game after 390 hours of playing.

When you visit Twitch, you can browse through a selection of games that people are playing and watch their gameplay live or from a recording. You can also chat with people that are watching the same game.

Twitch partners with tournament companies to stream their events and it has deals with partners like GameSpot and Joystiq for playing their shows. Twitch inserts ads into streams and broadcasters can enter partnership agreements to share ad revenues. There are subscription options for streamers that average around 1,000 viewers at any given time. For a monthly fee, the broadcasters can allow others to subscribe to their streams and remove the ads.

Twitch has over 45 million monthly users and has more peak Internet traffic than Facebook or Hulu. Twitch has raised a total of around $35 million in funding.