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-   -   Google eyes possible $1B acquisition of game-streaming service Twitch (http://forums.macnn.com/113/tech-news/510612/google-eyes-possible-1b-acquisition-game/)

 
NewsPoster May 19, 2014 05:59 AM
Google eyes possible $1B acquisition of game-streaming service Twitch
Game video streaming service <a href="http://macnn.com/rd/310109==http://www.twitch.tv/" rel='nofollow'>Twitch</a> could be acquired by Google in the future, according to reports. The deal, according <a href="http://macnn.com/rd/310110==http://variety.com/2014/digital/news/youtube-to-acquire-videogame-streaming-service-twitch-for-1-billion-sources-1201185204/" rel='nofollow'>to</a> <em>Variety</em>, is said to have been reached between Twitch and the Google-owned YouTube, with the all-cash offer claimed to be worth at least $1 billion, though <a href="http://macnn.com/rd/310111==http://online.wsj.com/news/article_email/SB10001424052702304422704579570601736756672-lMyQjAxMTA0MDEwODExNDgyWj" rel='nofollow'>the</a> <em>Wall Street Journal</em> believes the two companies are in early-stage discussions, and are not imminently close to an acquisition. <br />
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Launched in 2011, Twitch allows gamers to stream footage of games online, allowing others to watch and chat about in-game events. While YouTube does cater for both live streaming and gaming, Twitch extends this by allowing players to stream from within the game itself, with <a href="http://macnn.com/rd/310103==http://www.electronista.com/articles/14/04/18/xbox.one.continues.to.be.outsold.by.playstation.4/" rel='nofollow'>both</a> the Xbox One and <a href="http://macnn.com/rd/310104==http://www.electronista.com/articles/13/11/28/the.playroom.banned.on.twitch.due.to.non.gaming.us age/" rel='nofollow'>PlayStation 4</a> having the capability to stream without the user requiring to use a host PC to encode or upload the video, and also created an <a href="http://macnn.com/rd/310105==http://www.electronista.com/articles/14/03/05/twitch.sdk.allows.players.to.stream.game.footage.f rom.mobile.devices/" rel='nofollow'>SDK</a> for developers to stream from mobile-based titles.<br />
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<div align='center'><img class='mobile-img' src='http://photos.macnn.com/article_images/1400489048-md-twitchtvstream1.png' width='591' height='358' alt='' border='0' /></div><br />
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Twitch claims to have more than 45 million monthly users, with 1 million members uploading videos monthly. While YouTube continues to hold the lion's share of the online video market, the <em>Wall Street Journal</em> <a href="http://macnn.com/rd/310106==http://online.wsj.com/news/article_email/SB10001424052702304422704579570601736756672-lMyQjAxMTA0MDEwODExNDgyWj" rel='nofollow'>reports</a> Twitch is leading <a href="http://macnn.com/rd/310107==http://www.electronista.com/articles/13/12/13/youtube.abandons.100.subscriber.limit.for.live.str eaming/" rel='nofollow'>YouTube Live</a>, accounting for close to 44 percent of US-based live-streaming traffic in early April. <br />
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The two differ wildly in terms of audience and gaming content, with TubeMogul head of agency development Seth Bardelas claiming the viewers of Twitch will watch the long-form content for "hours on end," allowing it to command higher advertising prices in comparison to the shorter clips offered by YouTube. Current champion for gaming on YouTube, Felix "<a href="http://macnn.com/rd/310108==https://www.youtube.com/user/PewDiePie" rel='nofollow'>PewDiePie</a>" Kjellberg, commands close to 27 million subscribers with his "Let's Play" videos. Twitch, on the other hand, hosts streams from <em>GameSpot</em>, <em>Joystiq</em>, and other game-related online publications and communities, as well as being the online venue for various major gaming tournaments.
 
iphonerulez May 19, 2014 10:48 AM
I suppose the news media and pundits will cheer this acquisition as a perfect fit for Google and consider the price tag as a great deal. It seems Wall Street always goes along with Google's acquisitions without a peep.
 
shawnde May 20, 2014 05:48 PM
I'm sure they will ... and a bunch of them will criticize Apple for not having jumped in there with a higher offer (whether Apple need the tech nor not) .... Wall street always likes acquisitions, because it lines the pockets of their friends (M&A banks), using shareholder money.
 
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