REPORT: Google To Buy Twitch For $1 Billion
Multiple sources have confirmed that video site YouTube is purchasing livestreaming gaming service Twitch for $1 billion. The move represents Twitch’s outstanding ability to build a massive, engaged audience in just a few years of existence, while YouTube has struggled to keep viewers for more than a minute or two.
First reported by Variety and later by the Wall Street Journal, the deal has not been confirmed either by Twitch or by Google, YouTube’s parent company.
Launched in 2011, Twitch allows users to livestream their gameplay from popular video games.
According to the WSJ, Twitch has cornered the market on livestreaming; it claims to have 45 million unique viewers every month, and recently comprised 44% of livestream traffic in the US in a single week. It also takes up a huge share of overall web traffic at peak times. Meanwhile, YouTube has its own streaming services, but nowhere near that level of traffic. Known for shorter videos, YouTube may be looking to demand higher ad prices by buying a service where users are known to watch for hours on end.
What do you think of the purchase? Is this good for YouTube, Twitch, both, or neither? Let us know in the Comments.