The rumours about Google trying to scoop up Twitch, the online video streaming start up, back in May are more than just rumours as the deal is already signed, according to sources privy to the matter.
Although none of the companies have shared an official word yet, sources have confirmed the deal is now signed. The financial details of the deal were not disclosed.
While Twitch investors are rejoicing at the prospect of reaping the fruit of their investment, the deal iterates the growing significance of live internet streaming.
Twitch began its journey in San Francisco in 2011 and garnered 3.2 million active users in its first month. While it distributes shows from its partners such as Joystiq, Destructoid, CBS interactive’s GameSpot, etc., which are websites offering gaming news, its primary service is online game footage streaming. It lets users to stream their video game sessions from PC, Xbox One and PlayStation 4.
Currently, Twitch has developed into a service which has more than 50 million active monthly users and 1.1 million members among them stream video footage every month.
In March this year, Twitch accounted for 1.35 percent of all internet traffic. Microsoft reported that 2.7 million minutes of game footage was streamed on the day when Twitch app was launched on Xbox One creating a record which is still unbroken any other app.
Google’s YouTube which was acquired in 2006 in a $1.65 billion deal is reportedly handling the deal and the merger could result in YouTube transforming its services.
Most of the content on YouTube is uploaded and the deal has opened up possibilities to offer more live streaming content and the much-hyped competitive gaming growing as a spectator sport could help YouTube gain more prominence in the future.
[Source: VentureBeat]
