Google to acquire Twitch for $1bn: *Update* Twitch blocks copyrighted audio

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looking back, Google got YouTube for cheap.
 
The thing is though I have read that Google buying Youtube was a big mistake and they don't expect to make their money back from it.
 
Noob said:
If i was an owner of Twitch, i'd be crying tears of joy right now

I would also put down payment on a Lamborghini Aventador and a huge ass 3 story mansion
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Twitch inventors are likely not getting as much for this as people think? It turns out that Twitch was backed by nearly 100 million of investment. When everyone is paid back a huge amount will go to the investors. The founders of Twitch are not hurting but they are not like going to be buying huge houses and living like the super elite in San Francisco.

The inventors of WhatsApp made huge amounts when they where acquired because they show they can make money and still reach a huge audience. Justin and now Twitch have not been able to show significant revenue. Getting acquired by Youtube is more like a lifeline then YouTube wanting them. Twitch has faced fears that Sony or Microsoft would become more difficult to deal with overtime.

A billion sounds like a lot it is but when weight against other recent acquisitions it was a long time coming and not for a huge amount. Whatsapp founders made 6.8 billion dollars when their company was acquired and that was after their investors was paid off. WhatsApp has been around for less time and in that time became a direct competitor for Facebook and Google Plus in reach.

Facebook unlike Google seems to be willing to make sizable acquisitions like WhatsApp. Google seems to like dipping its toes in the water and not making huge investments in acquiring competitors or potential competitors. I view it as a billion dollar lifeline more then making founders rich.
 
PEB said:
Twitch inventors are likely not getting as much for this as people think? It turns out that Twitch was backed by nearly 100 million of investment. When everyone is paid back a huge amount will go to the investors. The founders of Twitch are not hurting but they are not like going to be buying huge houses and living like the super elite in San Francisco.

The inventors of WhatsApp made huge amounts when they where acquired because they show they can make money and still reach a huge audience. Justin and now Twitch have not been able to show significant revenue. Getting acquired by Youtube is more like a lifeline then YouTube wanting them. Twitch has faced fears that Sony or Microsoft would become more difficult to deal with overtime.

A billion sounds like a lot it is but when weight against other recent acquisitions it was a long time coming and not for a huge amount. Whatsapp founders made 6.8 billion dollars when their company was acquired and that was after their investors was paid off. WhatsApp has been around for less time and in that time became a direct competitor for Facebook and Google Plus in reach.

Facebook unlike Google seems to be willing to make sizable acquisitions like WhatsApp. Google seems to like dipping its toes in the water and not making huge investments in acquiring competitors or potential competitors. I view it as a billion dollar lifeline more then making founders rich.
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the WhatsApp buy seems to me a play to buy out a competitor. Their growth is insane over the small time they've been around. might as well keep those 450 million people under their umbrella instead of as competition.
 
Blayt7hh said:
The thing is though I have read that Google buying Youtube was a big mistake and they don't expect to make their money back from it.
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they've more than made their money back from it. Forbes say that YouTube profited almost 2 billion last year on 5 billion plus in revenue.
 
It's probably going to be very shitty for the people that stream via Twitch, right now they have a 'meh' deal going with a 50% share for subscribers (generally they get $2.49 per person subscribed to their channel and Twitch gets $2.50). You're probably thinking, "Big fucking whoop", but there are more than a few channels with hundreds of subscribers. There are people making an actual living out of other people watching them playing video games.

Youtube is notoriously stingy with their partners, so I don't see this boding well.
 
Michaelangelo said:
the WhatsApp buy seems to me a play to buy out a competitor. Their growth is insane over the small time they've been around. might as well keep those 450 million people under their umbrella instead of as competition.
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Correct that's why I don't feel like Twitch getting acquired by Youtube is a big deal. Twitch is not lighting the world on fire like other social media companies. They are likely bleeding investors money and seeing little if any return getting Youtube to acquire them is likely keeping them alive. They have a huge presence but like other streaming media companies face the constant fear of content lawsuits. Google has developed a somewhat workable model that some big media companies except. Being big does not always mean making money Twitch has users but debt.
 
Backend of Twitch needs major work. Something Google can address.

I dont foresee any notable cons with such a acquisition. Twitch streamers get the majority of the income from donations. Very few solely rely on the subscriber check every month.
 
YouTube used to be great before being purchased and before all the copyrights shaeganians bullshit.

The same fate awaits Twitch if the deal is made. Not good
 
Been a part of justin.tv/twitch for several years. I have no problem with it as long as it doesn't get worse. Should benefit from it a lot though.
 
Google will take over everything but facebook it seems. maybe they could merge with facebook tho and rule the world together
 
Tabarnakos said:
YouTube used to be great before being purchased and before all the copyrights shaeganians bullshit.

The same fate awaits Twitch if the deal is made. Not good
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This is what will probably hurt the casual twitch streamers (especially the new influx of PS4 and XBone streamers.) Twitch has been pretty lax about streamers playing copyrighted music. With Google in charge, that's going to change.

I wonder what will happen to archived videos that have music that's been copyrighted in the background? Get pulled? Accounts flagged? Suspended?
 
PEB said:
They have a huge presence but like other streaming media companies face the constant fear of content lawsuits. Google has developed a somewhat workable model that some big media companies except. Being big does not always mean making money Twitch has users but debt.
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This is what I am wondering too. With all of this money being talked about and with the possibility of a billion dollar deal in the works, when do companies like Sony, Nintendo, and Microsoft say "if you want to stream our content you need to pay us". I know Nintendo is pretty notorious for not wanting tons of people to stream their stuff but seems like they allow it on Twitch for now. I like Twitch, I participate in the Dark Souls community and hopefully this all works out.
 
Never cared for watching other people play... I like review videos, first impressions, that kind of stuff... normal gameplay stream? Meh
 
Aquabot said:
This is what I am wondering too. With all of this money being talked about and with the possibility of a billion dollar deal in the works, when do companies like Sony, Nintendo, and Microsoft say "if you want to stream our content you need to pay us". I know Nintendo is pretty notorious for not wanting tons of people to stream their stuff but seems like they allow it on Twitch for now. I like Twitch, I participate in the Dark Souls community and hopefully this all works out.
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I believe it will depend on if Google decides to go big into gaming? If they bring out a gaming interface for android running on lets say Samsung TV's this could cause problems? "I just put that up as an example" Sony and Microsoft likely knows that Google got their crap together streaming video and eating huge costs of it. Google has the market pretty much locked up right now for video ads. Apple is trying to play a little catch-up but Google has a monumental lead over all others. To make a streaming video model work you need significant revenues coming in to support it.

Google's reach an ad rates continues to cut into established media companies like Fox, CBS and NBC. Google's ad rates is far far lower then tradition TV and reaches over like some millions and millions of viewers. Basically Google can still generate profits spending millions on bandwidth. If Microsoft was to sue them it could be costly for Microsoft.
 
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