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Google closes another $ 1 billion deal for acquisition

Posted July. 28, 2014 02:26,   

Updated January. 01, 1970 09:00

한국어

Google reportedly pays 1 billion U.S. dollars for ‘Twitch,’ an internet game streaming service company. Google has bought YouTube, not known much to the public in 2006, for 1.65 billion dollars and developed it into a global No.1 video sharing website having 1 billion visitors a month. Attentions are paid to whether Google can turn Twitch into the second YouTube.

Business Insider, Bloomberg and other foreign media reported that Google is reaching a deal to buy Twitch on July 25 (local time). Twitch is a popular website that attracts 7 million users a day and has 50 million members centering on the U.S., though not very familiar to Korean users.

Twitch enjoys explosive popularity as demands are on the rise for live streaming of big-scale game competitions or broadcasting of popular gamers’ play.

Google’s purchase of Twitch seems as a step to strengthen the ‘live streaming’ service that broadcasts on-the-spot events via Internet. Google aggressively pursues the live streaming service through YouTube in such sectors as sports, music and game but it does not make strong presence in the scene. On the contrary, Twitch focuses on the game sector only and now it is an absolute market leader which accounts for 43.6 percent of the traffic occupancy in the real time streaming market in the U.S.

Twitch acquisition is forecasted to be Google’s second ‘Billion dollar deal’ to buy a company this year. Before this deal, Google bought Nest, home indoor temperature controller maker, for 3.2 billion dollars in January.