If you haven’t heard of Twitch you will now. Google’s Youtube is interested in acquiring the video game streaming service. So interested in fact that they are offering $1 billion to make it happen. It makes perfect sense for these two streaming giants to come together under one roof. Both companies offer streaming services and the integration of Twitch should be fairly seamless. In addition, the deal will give absolute validity to Twitch, which has become the gaming worlds go to place for viewing highlights and streaming live video game play.
If the offer goes through, Twitch will be the fifth investment Google has made in the billion dollar range. Twitch says that it has roughly 45 million users on a monthly basis, giving reassurance to the large price tag being rumored. Qwilt, an online video and networking firm, reported that Twitch accounted for nearly 44% of all live-streaming traffic for the week of April 7 of this year. Advertisers have found that viewers don’t just spend a couple minutes on the site either. Users will spend hours watching live streaming gaming events taking place around the world.
The gaming community is a devout group of people who take their video games seriously. There are some who have cultivated rockstar like fan followings through their video game exploits. Youtube is no stranger to this. Sweden’s Felix Arvid Ulf Kjelberg, better known as PewDiePie, has 26 million followers who keep up with his gaming on a regular basis. Google knows this investment will pay off and Twitch’s founders will most likely agree to the humungous sale. The biggest problem for Google will be fighting those who claim that acquiring such a large viewing platform while already owning another violates anti-competitive legislature.
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