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Report: YouTube Buying Twitch.tv For $1 Billion

Posted by Soulskill on 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."

4 of 142 comments (clear)

  1. So, my bet: by fuzzyfuzzyfungus · · Score: 5, Insightful

    For mysterious reasons that will be 'explained' only by spokesweasels emitting word salad, this will become the Big Bad Scary antitrust issue of the day, while the rapid consolidation of physical network infrastructure (despite the radically higher barriers to entry) will quietly recede into the background.

  2. Re:Twitch is not exactly a money maker by Luckyo · · 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.

  3. All of Twitch is a 'Copyright Violation' by Sarusa · · Score: 5, Interesting

    Since by YouTube's standards, everything on Twitch is a 'copyright violation' (streaming footage of a video game and completely ignoring that most of it is Fair Use with added content) I really have to wonder how they intend to deal with the corporate trolls who are now going to descend on Twitch like the vultures they are.

    I imagine that will involve giving most of the money currently going to the content creators to the copyright asserters. The RIAA model.

  4. Wow a fucking billion dollars aint shit today by InsultsByThePound · · Score: 5, Insightful

    Back when I was a kid the last millenium (80-90s), a billion as a lot of money. It was a domain that only Bill Gates and a handful of other chosen few were allowed to occupy. Now every damn internet start up is getting a billion each at least, often in the double digits.

    Shit with absolutely no real world business prospects to justify the price they command. Are we in Internet bubble 2.0?