Today, we wake up to rumors of YouTube buying Twitch.tv for around $1 billion. The first thing you might notice about this rumor is the fact that the source states, “YouTube Buys Twitch”, rather than it being Google to acquire the videogame-streaming service.
Variety goes into the background of each company and reasons for the purchase in their article, although they don’t list any sources other than those “familiar with the pact.” This is normally the case before an official word has been given.
Also See: YouTube app update stops iPhone crashing
What we do know – the deal is expected to be an “all-cash offer” and if the source is to believed, then we will be getting the official statement “imminently” from YouTube or Google. The $1 billion cost for Twitch.tv compares to a buyout of YouTube for $1.65 billion, back in 2006.
It is also interesting that this move is being made now Susan Wojcicki is CEO of YouTube, after being a Google executive for many years.
Twitch is known for being really popular among gamers and has played host to many events, including Pokemon updates and live broadcasts of some of the biggest gaming franchises. If you are a fan of Twitch.tv, how do you feel about this acquisition? Let us know in the comments.
Update: We have a little more information for our readers, it looks like Twitch could be either in an early stage of a buyout or even looking to raise funding rather than sell. This news comes from WSJ.