YouTube to buy videogame-streaming company Twitch: report

YouTube to buy videogame-streaming company Twitch: report

PanARMENIAN.Net - YouTube has a deal to buy Twitch, a popular videogame-streaming company, for more than $1 billion, Guru3d.com reported, citing sources familiar with the pact.

The deal, in an all-cash offer, is expected to be announced imminently, sources said. If completed the acquisition would be the most significant in the history of YouTube, which Google acquired in 2006 for $1.65 billion.

San Francisco-based Twitch lets users upload and watch free, live gameplay videos that can be streamed from Microsoft Xbox and PlayStation 4 consoles. The company claims to have more than 45 million monthly users, with more than 1 million members who upload videos each month.

YouTube is preparing for U.S. regulators to challenge the Twitch deal, according to sources. YouTube is far and away the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide, and the company expects the Justice Department to take a hard look at whether buying Twitch raises anticompetitive issues in the online-video market.

Twitch was launched in June 2011 by Justin Kan and Emmett Shear, co-founders of Justin.tv, one of the first websites to host livestreaming user-generated video. Shear currently serves as CEO of Twitch.

Founded in 2011, the startup has raised about $35 million in funding. Investors include Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates.

 Top stories
"We roughly know who they are. If we can take them out of the equation then the rest will fall down," Troels Oerting said.
Facebook, like Twitter and YouTube, is inaccessible in Iran on the grounds that the sites undermine Islamic values.
The firm said it brought the case in an effort to force the government to be more transparent about personal data requests.
The Google messenger is in early stages of development and is likely to be launched in 2015, sources aware of the plans said.
Partner news