We reported previously that Google was aiming to acquire Twitch. The acquisition could go for as much as $1 billion. The question now is what Google is looking to get out of this acquisition as this is by no means a small time deal. Twitch is a very popular game streaming and broadcasting hub. Although Twitch may not have much of a following outside the gaming universe, it?s a major player with regards to the gaming market. Twitch?s 24/7 service allows gamers, developers, and game companies to stream their titles all over the world with a following that numbers in the millions. Twitch estimates that they have more than 45 million visitors per month that streams huge volume of content on a daily basis.
Although there is no confirmation yet on talks about the deal, it?s highly likely that Google wants to acquire Twitch and below are some of the reasons why.
Access to the Gaming market
The gaming market is getting all sorts of attention from major tech companies and Google is no exception. There is a big market for the gaming fan base and it continues to grow at a very fast pace, especially since casual gaming on mobile devices are getting very popular. If Google wants to penetrate this space, Twitch could be the platform to propel them forward. As of right now, Google?s plans for gaming aren?t yet known.? If Google plans to move into some gaming space outside of the Google Play Store, Twitch could help them with that.
If you don?t want to fight them, acquire them
Twitch, as of right now, is in direct competition with YouTube. People will opt to choose one or the other considering the limited amount of time in a day for online video services. There is a big chunk that chooses to go with Twitch over YouTube and if they can have both services under one umbrella, then Google basically gets all the traffic.
As mentioned earlier, the gaming market is very popular and other companies like Microsoft may want a piece of that pie for themselves. They can either make a service that directly competes with Twitch or make one of their own. If Google can acquire Twitch, they effectively make their competition?s lives a lot harder.
Although the deal is for $1 billion, that is relatively a steal. The potential that Twitch has is enormous. Twitch currently has more subscribers than major players like HBO Go and the only thing that?s preventing Twitch from becoming even bigger is the lack of cash it needs to create more growth. If Google does this right, they can easily double or triple Twitch?s value in well over a year.
Photo Source: Twitch website