This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google Is Close to a Deal for Twitch

NEW YORK (TheStreet) -- Google (GOOG) reportedly has struck a deal or is close to purchasing video game streaming site Twitch for more than $1 billion in cash. Microsoft (MSFT) and a number of other unnamed suitors are also reportedly interested in purchasing the wildly successful company.

According to a report in Variety, Google's YouTube division is close to announcing it will pay more than $1 billion for the start-up service.

Google shares fell 0.5% to $518.02 in early trading in New York.


WATCH: More tech videos on TheStreet TV | More videos from Keris Alison Lahiff

Twitch allows users to watch and stream live video games on their Microsoft Xbox or Sony  (SNE) PlayStation 4 device. The three-year-old start-up reportedly has more than 45 million monthly users. It also has distribution deals with CBS' (CBS) GameSpot, Joystick and others.

According to the experts at Qwilt, Twitch, at times, outranks major online sports sites such as ESPN (ABC), WWE (WWE) and Major League Baseball combined. Looking at its success in another way, Twitch accounted for more than 1.3% of all downstream Internet bandwidth usage in North America in March.

The Wall Street Journal said Google is interested but talks are only in the early stages. Inside sources believe a deal isn't close to be completed. Those sources think Twitch could also be considering raising additional additional funding instead of selling the company.

Twitch was created by Justin Kan and Emmett Shear, co-founders of Justin.tv, one of the first live streaming Web sites of user-generated material. Shear serves as CEO of Twitch. To date, the company has raised $35 million in funding from investors including Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates.

The purchase could mean a boost for Google/YouTube's Live service of games music, sports, news and special events. Live currently trails Twitch in overall streaming traffic by volume.

Variety reported YouTube is preparing for a challenge to the deal by U.S. regulators. Because it delivers more than 6 billion hours of streaming video content each month, YouTube believes the Justice Department will have a number of questions concerning possible anti-competitive issues before approving the purchase of Twitch.

-- Written by Gary Krakow in New York.

>>Read More:

Google Glass Gets a New Boss

Google Must Remove Personal Search Results Upon Demand, EU Court Rules

To submit a news tip, send an email to tips@thestreet.com.

Gary Krakow is TheStreet's Senior Technology Correspondent.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs