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Google leads the race in Twitch acquisition bid

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YouTube is first in line to secure the possible acquisition of Twitch, a live video streaming service which has rapidly become one of the most popular videogame broadcasting platforms online.

According to reports, deals are at an early stage, and sources close to the matter say that Twitch has been courted by multiple suitors -- including Microsoft -- but YouTube has the most chance of securing the buyout. Twitch believes that YouTube will offer the company an avenue to cope with rapid growth and will be the best bet to help the firm scale up.

YouTube and Google have reportedly agreed on a price and are now thrashing out the details of brand independence going forward.

Launched in 2011, Twitch raised $20 million as a startup. According to online video and networking firm Qwilt, YouTube Live -- the company's own live video streaming service -- accounts for far fewer views than Twitch. According to Twitch, over 45 million unique visitors are logged every month, including one million video content creators.

Twitch has also considered raising additional funds instead of selling.

If the deal goes ahead, it is likely that Twitch would provide a valuable boost to YouTube's live-streaming service, as well as knock out a rival firm snagging valuable video views -- which can generate vast amounts of revenue for companies that integrate advertizing within their services.

Read on: Wall Street Journal | The Verge

— By on May 19, 2014, 2:58 AM PST

Charlie Osborne

Contributing Editor

Charlie Osborne is a freelance journalist and photographer based in London. In addition to SmartPlanet, she also writes for business technology website ZDNet and consumer technology site CNET. She holds a degree in medical anthropology from the University of Kent. Follow her on Twitter. Disclosure