Variety is reporting that YouTube, AKA Google, is set to finalize a deal to acquire rival streaming service Twitch for $ 1 billion.
Twitch, specializing in livestreams for video games, is actually a subsidiary of Justin.tv. The channel is slated to hit its 3rd birthday this June 6. Justin.tv decided to spinoff Twitch in the 1st place because it very quickly proved to be their most popular content since the site was founded in 2007.
On its own, Twitch does have its own slate of investors, including Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Thrive Capital, Draper Associates, and not coincidentally, Take-Two Interactive Software.
If the deal pushes through, it will be the biggest acquisition Google has ever brokered. It will also be their biggest intrusion into the gaming space, second only to Android’s Google Play. Twitch accounts for over 1 % of all web traffic in the US, and is said to have a monopoly on gaming streams online. Technically, they do have competitors in Major League Gaming and Google itself, but nobody really comes close.
Of course, this also raises concerns that Google will enforce the same Content ID policies, and use the same algorithm, that runs on YouTube onto Twitch. This will definitely have an adverse effect on many streamers who cover games that do get content ID’d, if not outright banned, in Youtube.
It may be a good move for the people at Twitch, but it may not necessarily to the benefit of its users. We’ll keep you up to date if the deal is finalized.
