Google has reportedly reached an agreement to acquire Twitch for $1 billion. After several months of rumors that the search giant was courting the streaming video platform, VentureBeat says that it has confirmed with several sources that it’s a done deal.
For those unfamiliar with the service, Twitch is a San Francisco-based company that enables people to broadcast video game sessions from their consoles, computers, and as of March, mobile devices. It also distributes content from CBS Interactive partners…
Here’s more from the VentureBeat report:
Google has signed a deal to buy game-livestreaming firmTwitch for $1 billion, confirmed sources familiar with the matter. We don’t know everything about this deal, such as when it will be announced and the exact purchase price. We do know that Twitch investors who participated in past rounds are pleased that they will be getting significant returns that are multiple times the amount they originally invested. [...]
Google and Twitch declined comment. Both companies happen to be speaking at our GamesBeat 2014event in September. This deal was first cited by unnamed sources from Variety said back in May that Google had made an all-cash offer and that the deal could be announced soon.
Twitch has more than 1 million members who broadcast videos, and sees over 50 million users on a monthly basis. Those users tend to watch some 216 million hours of video during the month, causing Twitch to account for as much of 1.35% of all Internet traffic.
If true, this is significant news for the entire tech world, as Google will effectively have the streaming video market cornered. Twitch was one of the few streaming services that came close to YouTube in terms of traffic. We’ll let you know if either company confirms.