YouTube, owned by Google, is acquiring the popular videogame-streaming company Twitch for more than $1 billion. The deal is an all cash offer and is expected to be annoounced very soon.
Twitch is a San Francisco based company that allows users to upload and watch live gameplay videos which can be streamed from your favorite console. Twitch claims to have more than 45 million monthly users and over 1 million members who upload videos each month.
What is the reason behind the acquisition? Personally, YouTube is likely widening its streaming services to live gameplay, which will likely come by the end of the year. However, looking at the big picture, Google can also tap into all the data and use it for marketing or what not. It will take sometime for regulators to approve the purchase, but I am sure YouTube is ready!