Youtube Acquires Twitch
May 23, 2014
Google’s Youtube team has recently acquired Twitch, a streaming video service website where gamers since 2011 record themselves and their screens playing games, for $1 Billion US Dollars. According to the CEO of Twitch, Emmett Shear, Twitch generates around “45 million unique viewers per month worldwide.” With such a high volume of trafficking to this website– and a high Alexa ranking, a measurement of how frequently a website is visited, of 252, the acquisition of Twitch is indeed a great choice for Google.
The day that Google announced that it was acquiring Twitch for a deal of $1 billion, Google itself gained $24.43, according to Stocktwits this week as of May 22nd, 2014– around five percent or around fourteen billion dollars in total added to it’s market worth to the public. Many believe that the Youtube team’s acquisition of Twitch was simply ingenious. Kevin Wei (12), a renowned Youtuber with over a thousand of subscribers, thinks that this acquisition is, “a very intelligent play by Google. A lot of gamers today like to both broadcast and watch gameplay videos– which makes up a huge majority of the videos on Youtube. By buying Twitch, Google will be able to capitalize off this trend tremendously.” Wallace Liew (10), another Youtuber/Twitcher (Twitch user) thinks that “the buying of Twitch will greatly help my Youtube channel out. Most likely they will be merged into one website– meaning I can get subscribers– without recording the games and re-uploading my videos onto Youtube, which is a waste of time.” However, some Twitchers might not like this plan, but to be honest this will help everyone who has both Twitch and Youtube Channels out.” Everyone that heard about this finds that this acquisition is as Michael Tamaki (11) says, “[very] beneficial. [Michael] can see Google’s Google+ Hangouts combined with Twitch’s infrastructure– which would be cool to see live stream hangouts, such as talks with the President, in higher quality and on a better platform.”
With Google buying Twitch via Youtube– Google is on a set line to increase it’s market worth. Last month, we saw heavy bearish signs of a company headed towards bankruptcy– a horrific 14% drop in April to both Google–around fifty to seventy billion dollars loss in market worth. However, Google seems like it is on the right track to earn it’s loss money with acquiring Twitch– so anyone who wants to go on a bullish ride– hop into Google before it is too late!