GamesBeat

Google’s $1B purchase of Twitch confirmed (updated)

Above: Twitch at E3 2013.

Image Credit: Twitch

Update 8/26: Amazon has acquired Twitch, snatching the almost-done deal out from under Google’s nose in a $970 million all-cash deal. See our explanation of how Amazon beat Google to acquire Twitch. Our original story is below.


 

Google has signed a deal to buy game-livestreaming firm Twitch for $1 billion, confirmed sources familiar with the matter.

We don’t know everything about this deal, such as when it will be announced and the exact purchase price. We do know that Twitch investors who participated in past rounds are pleased that they will be getting significant returns that are multiple times the amount they originally invested. The deal underscores the value of live Internet streaming and the rise of competitive gaming as a spectator sport — something that draws millions of viewers, can offer prize pools that surpass pro golf’s marquee events, and provides a multibillion dollar opportunity for advertisers.

Google and Twitch declined comment. Both companies happen to be speaking at our GamesBeat 2014 event in September. This deal was first cited by unnamed sources from Variety said back in May that Google had made an all-cash offer and that the deal could be announced soon.

Google’s YouTube division is reportedly in charge of the acquisition, which would represent a significant transformation of YouTube’s business. Google acquired YouTube in 2006 for $1.65 billion.

San Francisco-based Twitch enables people to broadcast their own gameplay sessions on the PC, Xbox One, or PlayStation 4 to online viewers. It enables both competitive gamers and average players to gain fleeting fame by entertaining those spectators, who sometimes number in the millions. In March, Twitch represented 1.35 percent of all Internet traffic, according to Sandvine.

Twitch has more than 50 million monthly active users and more than 1.1 million members who broadcast videos each month. Back in June 2011, Twitch had just 3.2 million monthly active users. Twitch also distributes shows from partners including CBS Interactive’s GameSpot, Joystiq, and Destructoid, all gaming-news sites. More than 13 billion minutes of video are watched per month on Twitch.

YouTube is the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide. But most of those videos are uploaded.

Twitch began in June 2011 by Justin Kan and Emmett Shear, cofounders of Justin.tv. The site was one of the first to host livestreams, or real-time videos of something that was happening at that moment. Shear is still CEO of Twitch.

Twitch has raised about $35 million from Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital, and Draper Associates.

More information:

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major glob... read more »

Twitch is the world’s leading video platform and community for gamers where more than 60 million gather every month to broadcast, watch and talk about video games. Twitch’s video platform is the backbone of both live and on-demand ... read more »

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85 comments
Peter Mavy
Peter Mavy

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Jaye Wagner
Jaye Wagner

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO! I HOPE THE WORLD ENDS BEFORE THIS IS OFFICIAL!!!!!!!!

Steven Hylton
Steven Hylton

lol all these people flipping out about how google is going to ruin twitch but youtubes doing great under google and im willing to bet twitch will do great too

Rosco Linn
Rosco Linn

 OMG WHYYY? WHY WOULD YOU DO THIS? WHYYY. NOW WE ARE ALL FORCED TO USE GOOGLE+ OMG... 

Salman AHmad
Salman AHmad

Lol. By the end of this decade. Nothing's gonna be new.

Aaron Thecomicbookjerk Gabbard
Aaron Thecomicbookjerk Gabbard

I can see it now "your video streaming rights have been removed due to licensing agreements" so no more streaming you can video yourself farting loud and someone else would own the right to the sounds that come out if your ass.

Benjamin Larsson
Benjamin Larsson

This is not bad for the moment but if google decides to become the bad guys that being said holding information from us and not communicating with us letting us be apart of all the change it could very well end very badly 2025, when Google X releases 10 hidden projects that media has not been able to wrap up.

I did a Upper Secondary School Project on how big Google is, there's also a video that covers most of the facts https://www.youtube.com/watch?v=-79uIRQiAFM


So, Google is on their way too own almost everything in this world, and why? Because they are the only one that can forward our advancement in Technology, and have the resources, money and power to do so.

M CY
M CY

༼ つ ◕_◕ ༽つ RIOT ༼ つ ◕_◕ ༽つ

Jiangchuan He
Jiangchuan He

It seems like google is prepared to conquer game field in the near future!

GamesBeat
GamesBeat

good thing or bad thing? what's your vote?

NP W
NP W

I honestly don't see this as a bad thing. Or at least so long as all the bugs and copyright crap on YouTube stay the heck off Twitch.

Ali Abdul
Ali Abdul

high-voltage ones this holds whether DC or AC IS used

Christopher Tevez
Christopher Tevez

ok, then it's also confirmed I will just use hitbox.tv for streaming from now on. hitbox is much younger and already better than good old twitch!

Christian Baur
Christian Baur

that´s exactly what went through my mind when I read that

Trevor Williams
Trevor Williams

It will be interesting to see how this pans out. I wonder if Google will use contentID on Twitch. If not approached carefully it could seriously impact the site...

Chino Yray
Chino Yray

this is actually good. All streamer can now earn revenue via Adsense.

Mario Heinrich
Mario Heinrich

"Unfortunately, this stream is not available in Germany because it may contain music for which GEMA has not granted the respective music rights."

Kaden Barriga
Kaden Barriga

I'm nervous about this... I was going to start streaming in the near future with my new rig... Please don't screw this up Google.

Sheen Len
Sheen Len

Google will definitely milk streamers' money and sue them of infringement at the same time

Xavier Castillo
Xavier Castillo

''You wanna live chat? Open your Google + account here.''

Samuel S
Samuel S

I'm very glad. Google is the best company to me and the only compatible with my principles. 

Marcel Mulders
Marcel Mulders

Great. So now Twitch is going to get fucked in the ass as well? Thanks Google.

Phil Dawson
Phil Dawson

I, for one, welcome our new Google overlords

Van Hailsing
Van Hailsing

Obviously a BAD thing, Google will increase number of ADs in all forms, shapes and sizes. There will be lots of countries blocked from Twitch now. Not to mention GooglepluSyphilis, copystroke contentID Google's revenue stealing method and incredibly stupid commentary and results sorting. Seriously any crap out there with "powered by Google" should be renamed "hijacked and underpowered by Google". 1 Billion dollars for a company like Twitch is a STEAL, nobody in their right minds would settle for penny on the dollar, Walter White explains this oh so clearly. Google will obviously also add their faulty player which will increase Twitch buffering problems ten times! Twitch viewers will probably get a 1 minute long commercial for every 4 minutes of broadcasting time they view.

Time to move to Hitbox or other sites :)

Matt Welch
Matt Welch

@Christopher Hernandez I wouldn't worry so much about Google's monopoly and worry about the studios and MAFIAA goons constantly trying to take down every piece of content on the web whether they own it or not.  Google cooperates with those idiots far too much for this to be good for anyone.

jacob sepulvado
jacob sepulvado

@Samuel S twitch is officially fucking dead, now Twitch is going to get fucked in the ass as well, there goes another good platform down the shit hole, PRO - better twitch interface.

CON - ummm...about everything else (copyright and forcing G+)

Jaye Wagner
Jaye Wagner

@Van Hailsing I totally agree with you, like you practically read my mind. Google will also implement Google+ to Twitch. I hate Google+! If all of what you said happens, I swear I am going to switch to Vimeo, use Hitbox, for search I will use DuckDuckGo. @GamesBeat It is not going to be "bad", it will be "HORRIBLE"! Also Microsoft tried to buy Twitch, now Google beat Microsoft's price. I hope and pray that Microsoft buys Twitch instead, I HOPE AND PRAY!!!

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