Google Lays Out $1 Billion for Twitch - The UpStream

Google Lays Out $1 Billion for Twitch

posted Sunday Jul 20, 2014 by Nicholas DiMeo

Google Lays Out $1 Billion for Twitch

Back in May, Variety reported that Google was in talks to buy Twitch for $1 billion. Well, as it would turn out, the rumors and reports are shaping up to be true. Google and YouTube are lining up to shell out over $1 billion for the up-and-coming video game streaming service.

As we've talked about in the past, Twitch has been doing exceptionally well as of late. Awards, records and overall success has come to the Justin.tv subsidiary and the company has been growing at a rapid pace. Google, on the other hand, really hasn't done much in the past couple of years and restrictions placed upon content creators have become more and more frustrating.

As of right now, we don't know very much about the deal or when it will all go down except that the contract signing in imminent. What is clear though is that initial Twitch investors will be making back a lot more than they put in, which should put smiles on many faces at the top of the ladder. No company has commented on the matter.

If you really think about it, the deal makes sense for both parties. YouTube has faced severe pressure from competitors like Twitch, Vimeo and DailyMotion, so simply acquiring one of the most successful brands shows that Twitch is obviously doing well, and that Google respected the brand enough to pick it up. YouTube's Live streaming service has not picked up enough steam to merit any threat to those offering live options either.

For Twitch, a lot of good can come out of this, too. Twitch has had less than stellar streaming and content requirements, with the most recent mishap being the PS4 Playroom debacle. But content creators have been able to use copyrighted music, in-game cut-scenes and other material all without punishment. YouTube Content ID system being implemented on Twitch streams could cure that problem.

Of course, there are those who are completely opposed to this acquisition, and their concerns are understandable. YouTube has been notorious for terrible buffering issues, false copyright claims and unwelcome changes. No amount of acquisitions would change those outstanding issues.

What do you think of all this? Is Twitch going to lose its luster and focus? We want to know in the comments section below.

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