July 25, 2014
Google is shelling out a massive $1 billion to buy video game-broadcasting company Twitch, according to news reports.
Sources “familiar with the matter” told Venture Beat the deal has been signed and that Google-owned YouTube is in charge of the purchase.
News of the deal is not much of a surprise. Variety reported in May Google had reached a tentative all-cash deal to buy Twitch for $1 billion to give YouTube a boost. Unnamed sources told Variety that, if the cash offer went through, it would be the most significant acquisition in the Google-owned company’s history.
Neither Google nor Twitch would comment on the deal.
Twitch, which was launched in June of 2011, is currently the most popular Web service on the market for watching and broadcasting video game-plays streamed through Xbox and PlayStation consoles.
The San Francisco company said more than 45 million monthly users and in excess of one million members are uploading videos each month.