If you can't beat 'em, buy 'em.
Google, Inc. is expected to announce that its video sharing site, YouTube, will buy rival Twitch for over $1 billion in cash.
Both Variety and the Wall Street Journal reported on the news, but WSJ said talks are at an early stage and that a deal is not imminent. Twitch has declined to comment on the rumor.
Twitch is a live streaming video platform focused on e-sports and video gaming that allows video-game enthusiasts to watch and upload video of gameplay. The website is at http://www.twitch.tv/
Launched in June 2011, Twitch now has over 45 million viewers every month with the average viewer watching an hour and a half a day. Twitch said it had more than 45 million monthly unique visitors in February, including one million persons that create and stream video content on the site.
Analysts said Twitch will be a potential boon to YouTube, which has its own live-streaming service for games, music, sports and news but lags behind Twitch. They noted that Twitch is a lot attractive to advertisers considering that the site's large and growing audience spends a lot of time sharing and viewing live gaming videos.
This passionate audience of aficionados helps Twitch sell ads at premium prices. Adding to Twitch's value are recent deals it struck with Sony Corporation and Microsoft Corporation that enable gamers to broadcast games from Sony's PlayStation or Microsoft's Xbox consoles with one click or via voice command.
Google is continuing to invest in videogame content, and took a minority stake in Machinima, a network of videogame channels on YouTube. YouTube has also made it easier to post videos of live game play online.