In case you haven't been following up on the market, there have been a number of major acquisitions off late involving a number of companies with their specified plans and agendas. And keeping up with the trend, popular video streaming service YouTube is currently set to acquire videogame streaming service Twitch.
As revealed via the numerous reports related to the same doing rounds on the web, the new deal will see YouTube pay up a billion to acquire the services of Twitch forever. Apparantly, Twitch is being acquired by YouTube as part of a deal worth more than $1 billion, according to a report from Variety citing sources.
In case videogaming is deeply embedded into your system, you will wonder what kind of a work Twitch actually does, and why is it worth such a lot. For starters, the San Francisco-based Twitch lets users upload and watch free, live gameplay videos that can be streamed from Microsoft's Xbox and PlayStation consoles.
The company claims to have more than 45 million monthly users, of which more than 1 million upload videos each month. Also, it has deals to distribute shows from partners including CBS Interactive's GameSpot, Joystiq and Destructoid.
As of now, it's unknown as to how this new arrangement will affect either Twitch or YouTube from here. However, Variety claims that YouTube is preparing for any kind of resistance U.S. regulators may present once the deal goes public.
Irrespective of what goes down with the deal, another report on the same from The Wall Street Journal states that while YouTube is in talks to acquire Twitch, the negotiations are still "at an early stage, and a deal isn't imminent." WSJ has its own source on the scene as well.