Seeking Alpha

Report: Google reaches deal to buy Twitch for ~$1B

  • VentureBeat reports Google (NASDAQ:GOOG) has reached a deal to buy live game-broadcast/streaming leader Twitch for ~$1B.
  • Variety and The Verge reported in May Google, via YouTube, was in talks to acquire Twitch for $1B. The site claims 50M+ monthly users, including over 1.1M who broadcast their gaming activity, and has 4K+ content provider partners (inc. major sites such as GameSpot and Joystiq) whom it typically shares ad revenue with.
  • Twitch has thus far successfully fended off a competitive challenge from YouTube, which reportedly had $1.5B in 2013 net revenue and is now run by former Google ad/commerce product chief Susan Wojcicki. Twitch's heavy reliance on the coveted 18-34 demographic hasn't gone unnoticed.
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Comments (6)
  • Chubby Lipshitz
    , contributor
    Comments (327) | Send Message
     
    I recently bought GOOGL for my portfolio, but I truly don't understand what Twitch does, I wonder if I am in the right investment.
    24 Jul 2014, 10:17 PM Reply Like
  • Bouchart
    , contributor
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    Here's twitch in a nutshell: People play games on their computer or on their game consoles, and they use twitch to broadcast their game footage for people to watch. The one playing the game typically provides some audio commentary or interaction with the people watching.
    25 Jul 2014, 12:15 PM Reply Like
  • Chubby Lipshitz
    , contributor
    Comments (327) | Send Message
     
    Thanks, now I know I am way out of touch with this modern world. Just one more question, if you'll indulge an old technophobe. Why can't these folks use Facebook, or Google Plus to do the same thing they do with Twitch? What is Twitch's competitive advantage?
    25 Jul 2014, 07:45 PM Reply Like
  • Bouchart
    , contributor
    Comments (801) | Send Message
     
    Think of Twitch as a streaming service where gamers provide the content, live. Facebook and Google don't currently offer anything like this. There are other sites that offer a service like this- one of them is called hitbox.tv. It isn't anything that can't be duplicated.

     

    Twitch's advantage is that it's large. People use it because other people are using it. It's basically the same as any social network in that respect.

     

    One other thing to note is that a lot of gamers who broadcast on Twitch will upload their recorded videos to Youtube, so there's a lot of overlap between the two user bases already.
    26 Jul 2014, 04:46 PM Reply Like
  • Chubby Lipshitz
    , contributor
    Comments (327) | Send Message
     
    Now it is clear, thank you
    27 Jul 2014, 08:07 AM Reply Like
  • sunwindgeo
    , contributor
    Comments (329) | Send Message
     
    Be careful of the near term for price drop outs. I'm unclear that Apple stays up there, and Google may also drop out as people take profits from the recent split. Just a thought. That is why I didnt' buy since it was a big risk for a small investor. Even at the lowered price.
    25 Jul 2014, 08:29 AM Reply Like
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