What happens when a comparatively small-time company experiences massive growth? That’s right: some bigger company comes along and buys them – see Instagram, WhatsApp, and more recently Oculus VR.
Twitch is the newest kid on the block to be snaffled up by a bigger entity – although the actual snaffling is still in the early stage. The video game streaming service has experienced massive growth in the last year or so, which they partially attribute to Sony embedding Twitch streaming into every PlayStation 4 console. Now that Microsoft has followed suit for the Xbox One, and more and more developers and companies are making Twitch their video streaming service of choice, Twitch is in need of assistance.
That assistance is coming from YouTube, with The Verge citing sources “with close knowledge of the talks” saying that Google’s YouTube has beaten other companies (including Microsoft) in the acquisition of Twitch. From the sounds of things, Twitch has had multiple suitors covering total buyouts as well as smaller investor offerings.
Twitch has essentially outgrown its current setup, and with aims to be the leading website on the planet for video game streaming, they believe they’ve found the best possible partnership with YouTube. At present the agreement is supposedly finalised and both companies have decided on an amount. That amount is rumoured to be $1 billion. All that remains of the talks is to determine the degree of autonomy that Twitch will maintain after the buyout.