Strategic purchases. These are quickly becoming the norm in the technology industry these days, with several such buyouts completed in the past few years.
And now we have reports of another one in the making.
Twitch, the popular video game streaming service, is in the news currently with rumors of an upcoming buyout. The company has seen massive growth in usage recently with reports that it is the fourth biggest source of Internet traffic in the US during peak hours.
This, for all intents and purposes, places it just behind Netflix, Google and Apple — and easily ahead of companies like Amazon and Facebook.
Now, instead of raising more money via venture capital sources, Twitch has instead decided to partner up with a major technology firm to help deal with this massive growth, both in usage and bandwidth.
The Verge confirms these new rumors of a buyout by YouTube (owned by Google, of course), while also claiming that Microsoft has also put in a serious offer to buy Twitch. Serious offer, they say.
Microsoft have been focusing hard on software and gaming lately, and an acquisition like this could have placed the company in a good position as it transitions over to devices and services approach.
As of this writing the deal with Google is almost confirmed.
Missed opportunity or just plain hard luck?