The lights are on
Update: The Wall Street Journal has a pair of sources who say that the YouTube/Twitch deal is still being ironed out.
The report says that the sides are working on the deal, but characterized it as in its early stages and that nothing is imminent. The Wall Street Journal also says that the price of the potential acquisition is unknown.
[Source: The Wall Street Journal]
Original Story: Google and YouTube have reportedly reached a deal to purchase Twitch for over $1 billion.
Variety is reporting on the purchase and says it should be officially announced soon. YouTube has purchased the video game streaming company in an all-cash deal which will be the largest purchase in YouTube's history.
Variety's sources are also reporting that YouTube expects the purchase to be examined and challenged by U.S. regulators. It expects the Justice Department to examine the purchase and whether it creates anticompetitive issues related to online video services.
We've reached out to Twitch to find out more information and will update this story as more details arise.
Our TakeThis pending purchase is a little bit of a surprise, but it certainly makes sense. YouTube wants to continue to be the biggest provider of online video, and Twitch is moving in on its territory quickly. Last summer, YouTube published a study detailing how prevalent and widespread the expansion of video game content has been on its site. Video games are crucial to the future of YouTube, and the purchase of Twitch is a clear and important investment.
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