YouTube to buy Twitch?

News Aaron Birch
19 May 2014 - 18:43

YouTube is apparently looking to purchase streaming service, Twitch, for a cool $1 billion...

It's being reported that Google-owned YouTube is looking to buy the Twitch service, which is used by over a million gamers to stream content to Internet viewers from PC and games consoles, including the Xbox One and PlayStation 4.

Variety has reported that the two companies reached a deal that'll see the Internet video giant, YouTube, purchase the young streaming company, citing 'sources familiar with the pact' in the report. It's believed that the all-cash deal will be announced shortly, claiming that it would be the most significant acquisition in YouTube's history.

However, others disagree. The Wall Street Journal has claimed that the two companies are still very much in the early stages of negation, and that any announcement will be some time yet.

Of course, news travels fast, opinions doubly-so, and there are already swathes of naysayers criticising the move. Google and YouTube have taken a lot of flak in the past for various missteps, such as the integration of Google Plus into YouTube, and the various unwelcome changes to the site, along with cost cutting measures affecting YouTube's overall performance, and so some say this is the death knell for Twitch. Much of the worry stems from YouTube policies, which have strangled content makers with copyright issues. If this were to roll over to Twitch, it's feared this would greatly limit the service for users.

There may be no concern, though, as Twitch already has a solid legal standpoint with regard to copyright law, and it's unlikely that YouTube and Google would want to upset this. Neither would game developers and publishers, as Twitch is basically an advertisement for the games streamed on it, with people seeing games they're interested in, and then buying them to play for themselves.

It's also widely known that Twitch, being a relatively new company, is plagued by issues, such as hardware limitations that enforce 60 second delays and low resolution streaming, and other problems like poor archiving. A $1 billion cash injection, and backing of YouTube would certainly help with this. So, it may not all be bad news.

We'll have to wait and see what transpires if and when an official announcement is made soon.


Wall Street Journal

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