Report: YouTube Buying Twitch.tv For $1 Billion

Posted by Soulskill on Sunday May 18, 2014 @12:20PM from the day-for-deals dept.

Variety reports that Google's YouTube unit has reached a deal with Twitch.tv to buy the game-streaming service for $1 billion. From the article: "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. ... 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."

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Re:Twitch is not exactly a money maker by Luckyo · 2014-05-18 12:33 · Score: 5, Informative

Twitch.tv however has a lot of profitable users. People actually subscribe and pay money on monthly basis, PER CHANNEL and portion of that goes to twitch.tv.
Youtube on the other hand has a lot of users, but they are nowhere near as lucrative. It comes with twitch's role as a very specialized service.