Twitch

A new report claims Google decided to end acquisition talks with the game video streaming service Twitch.tv due to concerns that the deal could generate antitrust investigations from government regulators.

On Monday, Amazon and Twitch.tv jointly confirmed that the online retailer will acquire Twitch for $970 million in cash, with the deal expected to close sometime before the end of 2014. However, rumors began in May that Google's YouTube subsidiary was in deep negotiations to acquire Twitch.tv for a price tag of over $1 billion.

Forbes, using unnamed sources, claims that Google was unable to finalize a deal to buy Twitch because of the fear that antitrust regulators might focus on the fact that the company already owns YouTube, which offers its own game video streaming features. The story claims that because of these concerns, Google and Twitch were unable to come to an agreement on a breakup fee if the deal was announced and then later cancelled.

If this story is accurate, do you think Google made the right decision in not buying Twitch?

Source: Forbes

 

Reader comments

Report claims Google halted Twitch.tv acquistion talks due to antitrust concerns

32 Comments

Yes. They can build a Twitch for less than a billion dollars, although they'd have to fight for the mind/market share.

I actually think Break-up fees are ridiculous as used today. They are meant to force good faith, but now they are being used as potential revenue.

Looks like the US and EU are finally reaching their limit on Google's shopping spree of acquisitions lately. That's a good thing. We don't need another old Microsoft anyway.

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This. As much as I like Google's Services, Google shouldn't be allowed to do whatever they want. Hell, keeping Google in check makes for a better Google and a better Android.

Look at where Microsoft is right now. That's what happens when you get too big.

Amazon could be poised though to become the "next Google". They have their e-commerce site, a line of tablets and phone (granted it's forked OS, but still), streaming service, streaming device, music service, buying/selling site, grocery site, payment service. They're not all that far off, IMO.

True, but they are lacking the revenue and influence that Google has. The phone just launched, the tablets haven't sold that well, and their movie and music streaming services pale in comparison to Google's offerings. Having these services in and of themselves doesn't make Amazon close to being the next Microsoft, in my opinion.

Maybe, but I wouldn't take them for granted either. :-) The company isn't going away anytime soon, and I can't see them abandoning their devices or their services. If nothing else, this Amazon acquisition (and anything else they go after in the future), will keep Google on its toes.

Amazon will not be a threat to anyone at all until they can do a profit of over 20% of what they are taking in. Right now they are solid, but living on razor thin margins...

I would be too if I invested in them. They struggled though all the crap years and want the pay off....I know that slow and steady wins the race, but there is slow and Amazon slow.

How ya been Merc, long time no see. Hope all is well

"If nothing else, this Amazon acquisition (and anything else they go after in the future), will keep Google on its toes."

And, to/for the Android fan/enthusiast and a champion of competition, that can only be a good thing.

In a free society, it's not the proper role of government to keep industry " in check." There is not even a need for this as rhat's what the consumer does through market forces.

Your Microsoft example merely illustrates how silly the notion of monopolies are.

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Fair enough. But, a Google whose size could get out of hand is good for no one, not even an Android diehard. And, even with market forces in place, you still require a regulatory body, in the event that market forces are being manipulated by a particular company or group of companies.

The question isn't whether or not you need regulation but rather, who provides it?

In a free market, for a company to become large it must provide a service or product that the consumer wants.
Becoming large is a sign of success not a problem. With this in mind, using the government to stop growth means making the consumer worse off than they otherwise would be.

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Until a monopolist is able to shut down any competition through cash and influence. People may want a better product, but if the monopoly shuts down or destroys the smaller company that provides that product, the consumer doesn't benefit, and if a monopoly company hyper-inflates the cost of a wanted (or needed) item, the consumer definitely suffers. Remember Standard Oil?

Nice excuse for 'Amazon beat us to the punch' :P Anyway, like someone else said here, Google can build a better Twitch based off YouTube Live and Hangouts. I still don't get why you would want to watch someone play a videogame, but OK, obviously a lot of people differ with me if this company was worth nearly a billion buckaroos.

Which goes to show why I don't like Sports on TV hehe. I like to play sports, I just don't find the appeal on watching someone else do it.

Watching sports can show people all sorts of things and motivate them to be active and healthy. Watching people play video games is sad and a waste, in my opinion. But, if there's a market for it, by all means, make money off people staring at their tvs.

but google was gonna pay over a billion so i dont think amazon beat em to tha punch and yea they could build ttheir own twitch but xbox one already has a bulit in app for twitch so google would b playing catch up as they would have to develop the service stabilize it then build a app stabilize then promote that takes a lot of time

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Maybe they should look into how a company that loses hundreds of millions every year forks out a billion in cash. Amazon are rich due to money they expect to make and get back in the future. Sound familiar?

n5

I do agree to some extent that Google was just trying to by twitchs user base, not the company. But that is all Amazon did too.

I dont think it would be different from Facebook buying Instagram...