Two reports have suggested that Google (via YouTube) are to purchase Twitch for more than $1 billion in cash.
Variety seem to think the deal is done and will be “announced imminently” whilst the Wall Street Journal suggest “talks are at an early stage, and a deal isn’t imminent.” Both are citing “sources close to the matter.”
Although YouTube has its own steaming service it falls way behind Twitch which accounted for nearly 44% of streaming traffic by volume in the week of April 7 in the United States.
The Verge report that Microsoft was also in the running to purchase the streaming company and had made “serious approaches to Twitch”, a move that could have proved difficult for Sony.
Even if a deal is agreed it will face scrutinisation from the United States Justice Department, Google already the most popular video site, YouTube, and purchasing Twitch may raise anticompetitive issues.