Google has reached an agreement to buy game Twitch for $1 billion, according to sources familiar with the matter. Twitch is a San Francisco-based company that allows users upload and watch free, live gameplay videos that can be streamed from PC, Microsoft Xbox One and Sony PlayStation 4 consoles.
According to Variety, Google made an all-cash offer sometimes in May and the deal could be announced soon. If this is acquisition is confirms, it will emphasize the value importance of livestreaming games on the internet and also make gaming a spectator sport where people can watch competitive game play online just like they watch football and other live sporting events.
Google’s YouTube division which was acquired in 2006 for $1.65 billion is reportedly in charge of the acquisition, which would represent a significant transformation of YouTube’s business. At the time of reporting, there is no information about the exact purchase price or when the deal will be announced.
Twitch enables both competitive gamers and average players to gain pretty fame by entertaining online spectators who sometimes number in the millions. It began in June 2011 by Justin Kan and Emmett Shear, records more than 50 million monthly active users and more than 1.1 million members who broadcast videos every month. and more than 13 billion minutes of video are watched per month on Twitch.
The company has raised about $35 million from Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two InteractiveSoftware, Thrive Capital, and Draper Associates.
Twitch is the world’s leading video platform and community where gamers and spectators up to 45 million gather every month to broadcast, watch and talk about video games.