Whenever a major purchase occurs, the world scrambles to figure out which companies will be acquired next, how much they will sell for, and who will buy them. If a questionable firm like WhatsApp can earn $19 billion, surely Twitch — a growing video streaming empire with a few hundred million users — could earn several times that amount.
According to a report by GamesBeat, Google is planning to purchase a streaming video network Twitch for $1 billion. Twitch turned down an offer to be bought by Facebook just a few months ago. Facebook offered half a billion dollars based on overvalued Facebook stock.
Why would Google be interested in Twitch? The real value in Twitch comes in search. It holds the keys to the best real time database and search engine on the internet. If Google does end up buying Twitch, it will be a brilliant deal. The value of Twitch will only end up going up over time.
The biggest question everyone is asking themselves – where is Microsoft in all this? It is surprising that they are not actively involved in the negotiations to try to acquire one of the world’s leading live streaming video platforms. Microsoft took a large hit when IBM and Apple announced their partnership in July 2014. In the search world, Microsoft and Google are neck in neck, but it’s always Google that takes home the bacon.
Twitch, which was launched in 2011 by Justin.tv co-founders Justin Kan and Emmett Shear, is the Internet’s premier service for live streaming sports and game plays. The service has more than 50 million active users. Both the PlayStation 4 and Xbox One allow users to broadcast gameplays directly to Twitch and other sites, and Twitch users can watch video and chat with others on the web and through apps on a bevy of platforms.
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