Financial News

  • 19 May 2014, 13:56

YouTube 'To Buy Video Streaming Site For $1bn'

A website which allows you to watch other people playing computer games is to be bought by YouTube for $1bn (590m) in cash, according to reports.

The deal would be the most significant in the history of YouTube, which was purchased by Google in 2006 for $1.65bn (980m).

Variety magazine cited unnamed sources who it said were familiar with the deal, adding that the purchase would be announced shortly.

The Twitch website lets users stream live footage from Xbox and PlayStation 4 consoles, as well as uploading standalone gaming videos.

The company says more than 1 million members upload videos each month, with around 45 million monthly users.

During peak hours, the site has more traffic than Facebook and Amazon.

The Variety report claimed that YouTube - the world's largest video sharing platform - is prepared for US regulators to challenge the deal as potentially anti-competitive.

Twitch was launched in 2011 by Justin Kan and Emmett Shear, who co-founded livestreaming site Justin.tv.

The start-up - which represents more than 1% of all downstream bandwith in the US - has raised about $35m (21m) in funding.

It has been reported that other major technology firms including Microsoft had previously shown interest in Twitch.

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