Hello,
The big gaming news story of the day was Google's claimed acquisition of the live video streaming company Twitch. Twitch is only a few years old as a company, but it has quickly gained popularity & secured its place as the number one live streaming platform for gamers.
My sentiments of the aquisition are pretty much the same as they were at the time, when Google bought YouTube. Both YouTube and Twitch had secured their place in their field by a large margin, when the information of their aquisitions by Google became public. The similar services of the bigger corporations somewhat lacked the innovativeness and the youthful reputation of these "heavyweight startups". The aquisition makes perfect sense as it would have been an extremely tall order for any company to challenge these rising stars of the video sharing & streaming.
On the other hand, it is very hard to evaluate the reported price of the acquisition, as I do not know the business well enough to estimate the profitability and the future potential of video streaming companies, but combined with Google's business model & YouTube's user base this deal feels intuitively quite sensible (from the business-perspective).
It's also an interesting issue to ponder when it is the perfect time for a big company to buy these types of super high growth businesses. If you're too early, you might bet on the wrong horse & if you're too late, the price is out of reach or you might be the one who gets bought.
In addition, one might say that the recent purchases are an inspiring example of the power of the entrepreneurial drive in startups. There will always come a new team of inventive pioneers, who are able to find out how to do something better or how to do something totally new.
Have a great day,
KG
edit. forgot to mention about the possibility of denying the acquisition (by the U.S regulators) & some think it could really happen. Interesting to see how it goes.
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