YouTube Drops $1 Billion On Gaming Platform Twitch

YouTube CEO Susan Wojcicki clearly recognizes the value of gamers to YouTube — she just dropped $1 billion on video gamer platform Twitch.

Twitch, a San Francisco-based company, allows gamers to upload and watch free, live gaming videos from Xbox and Playstation 4. The “free” part will make it tough for YouTube to recoup its all-cash payout to the company, but Twitch’s game-streaming abilities will strengthen YouTube’s allure with gamers.

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And that could be a problem for YouTube.

Though they declined to comment on the acquisition, executives from YouTube are already anticipating that the Justice Department might decline the sale to discourage anti-competitive practices.

Twitch’s roughly 45 million users might make YouTube, who is already the No. 1 video aggregate site by a large margin, just a bit too out of reach in the eyes of the law.

Of course we’ll let you know what happens, but if past actions are an indicator, expect Relativity Media’s CEO, Ryan Cavanaugh, who owns a chunk of Twitch’s competitor, Major League Gaming, to try and jump in somewhere with a slightly bigger offer.

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