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Reports are coming out from the Wall Street Journal and Variety that Google is looking to acquire live video-streaming service Twitch, and integrate it with its YouTube service.

The reports, which seem to come from two sources close to the talks between both companies, indicate that the discussions are still in their early stages and nothing is yet concrete about the deal. However, they seem to indicate the Google is looking to integrate the Twitch platform and its huge monthly traffic, recently put at close to 45 million, with its video streaming service YouTube.

YouTube Live lags behind Twitch’s monthly incoming traffic, but this move could be seen as being a great way to increase YouTube Live’s traffic and profile for live video streaming capabilities.

Video game content is extremely popular on YouTube, with many games watching walk through guides, trailers, special features and Easter eggs, to name but a few. Game videos are surely big draw cards; there is a game video maker on YouTube with up to 27 Million subscribers to their channel.

Recently Google has invested in video game content, taking a minority stake in Machinima, a network of video game channels on YouTube. Twitch has its own big investors too. After the service was launched in June 2011 by Justin Kan and Emmett Shear, the startup company has raised about $35 million in funding and the backing of various investors including Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates.

If the acquisition were to be completed, it would be the most significant in the history of YouTube, which Google acquired in 2006 for $1.65 billion. It is also important to note that the rumoured acquisition comes after longtime Google ad exec Susan Wojcicki was named CEO of YouTube earlier this year.

Both companies have refused to comment on these reports but it will be interesting to see if Google will snap up Twitch and integrate it within YouTube.

Do you think it makes sense for Google to acquire and integrate Twitch within its YouTube Service or do you think Google should keep Twitch seperate? We would like to hear your thoughts in the comments below.

Source: VarietyWall Street JournalEngadget.
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Mark Corlson

“This stream has been removed due to copyright claim”