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Twitch Nets $20 Million From Take-Two, Other Investors

| 30 Sep 2013 19:50
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The video streaming site gets cash injection ahead of the next generation console launch.

Twitch has become the go-to site for people looking for videos of their favorite game, and others in the business world have taken notice. The company announced today a $20 million investment among several parties, led by venture investment firm Thrive Capital but also including Grand Theft Auto publisher Take-Two and WestSummit Capital, a Chinese technology investment firm. It is unclear how much the individual parties each contributed to the $20 million.

A press release issued by Twitch noted that the money will be used to help prepare the site's infrastructure for the release of the PlayStation 4 and Xbox One later this year. Twitch had previously announced viewing and broadcasting integration for both consoles.

"Given the excitement surrounding Microsoft and Sony's upcoming video game consoles, Twitch will be in a lot of living rooms this holiday season," said Kevin Lin, Twitch COO, via the press release. "Their intuitive and accessible integration of Twitch removes the barriers to entry which casual broadcasters currently face, so we expect traffic numbers to soar when these consoles launch. The trend of video game based content as entertainment is not only here to stay, it's becoming a critical part of the holistic gaming experience."

"Twitch is a company that we see riding multiple waves both in gaming and online video," said Chris Paik, Partner at Thrive Capital. "By providing gamers a new way to express themselves, Twitch has built a strong, passionate and fast growing community around itself."

Not included in the release was a comment from Take-Two. However, given the millions of dollars the company made on Grand Theft Auto V since its Sept. 17 launch and the fact that the game has a multiplayer component set to launch tomorrow, it seems clear Take-Two has its eyes set on developing its online community going forward.

Source: Joystiq

Disclosure(s): Strauss Zelnick, Chief Executive Officer and Chairman of the Board of Directors of Take-Two Interactive Software, Inc., is the head of ZelnickMedia, an investor in both Take-Two and Defy Media, LLC, our parent company. This article was published without approval or consent of ZelnickMedia or Take-Two.
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