YouTube to Acquire Twitch TV for $1 Billion
YouTube has agreed a deal in the region of $1 Billion for the popular streaming service Twitch which used and viewed by millions for gaming related content, according to sources. Variety has reported that an announcement is imminent and will be the biggest deal in YouTube’s history.
“The deal, in an all-cash offer, is expected to be announced imminently, sources said. If completed the acquisition would be the most significant in the history of YouTube, which Google acquired in 2006 for $1.65 billion. The impending acquisition comes after longtime Google ad exec Susan Wojcicki was named CEO of YouTube earlier this year.”
The service which launched in 2011, saw a huge surge in popularity with the release of Microsoft’s Xbox One and Sony’s PlayStation 4; both offer the option to stream games live directly from the console.
YouTube is preparing for U.S. regulators to challenge the Twitch deal, according to sources. YouTube is far and away the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide, and the company expects the Justice Department to take a hard look at whether buying Twitch raises anticompetitive issues in the online-video market.
However both Twitch and YouTube have declined to comment.