Google to buy Valve? Not likely

September 17, 2008 | Dean Takahashi | Comments | |

It isn’t clear why Google would want to be the steward of the “Half-Life” video game franchise or be the company that sells to the world the “Left4Dead” zombie-killing game. But rumors are floating that the search giant is buying Valve LLC, the Bellevue, Wash.,-based game developer.

[Update: A source close to the matter tells us this isn't going to happen.]

The reason is that Valve owns Steam, the premier digital distribution network for computer games. Valve has become one of the biggest purveyors of games through Steam, which has more than 15 million PC users playing its games. Steam is a way to distribute and facilitate the play of high-quality online games such as Valve’s Counter-Strike team-combat game. But it’s also an end-run around retail stores and a way to put an end on piracy through online security controls.

Valve is best known for its games such as “Half-Life 2,” “Counter-Strike,” and “The Orange Box” (featuring “Portal”) — all of which have sold millions of units. It is headed by Gabe Newell, a former Microsoft executive who founded the company. The attraction for Google is that it could become a leader of digital distribution and expand Valve’s technology so that it can be an e-commerce vendor of all sorts of digital goods.

A spokesman for Google declined to comment. But Valve spokesman Doug Lombardi said in an email, “I wonder when Google’s going to call and tell us.”

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About the Author, Dean Takahashi

Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.

  • sam
    Yeah it is kind of odd. They can build the same platform easily. Waste of money.
  • Hi Dean, the rumor has already been squashed by Valve.

    http://www.joystiq.com/2008/09/17/inquirer-goog...

    Though they could be keeping it under wraps.
  • Dave
    I certainly hope this is just another rumor. Not that Google couldn't handle it but it bothers me to see co's jump on the bandwagon simply because it's a money-making industry right now. Nothing good would come of it.