Expanding beyond the typical hardware products the company is widely known for, Logitech International [stock_market_widget type="inline" template="generic" color="default" assets="LOGN" markup="(SIX: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] [stock_market_widget type="inline" template="generic" color="default" assets="LOGI" markup="(NASDAQ: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] just announced plans to snap up a streaming tools platform.
Logitech has entered an agreement to acquire California-based Streamlabs in a primarily cash transaction for $89 million, with an additional $29 million in stock to be issued if revenue milestones are hit in the coming years.
Through the transaction, the company will gain access to the Streamlabs OBS program, which is used for setting up a Twitch and Youtube feed utilizing professional overlays to give donation alerts and attract new subscribers.
Aside from helping new streamers get up and running producing monetized content with the OBS software, Streamlabs additionally offers the Creator Sites tool for creating custom branded websites.
Discussing the acquisition deal that is expected to close next month, Logitech G general manager Ujesh Desai commented:
Logitech G — the company’s gaming-focused spin-off brand — has previously dipped its toes into the streaming industry by selling the C922 tripod webcam aimed specifically at Twitch game streamers.
Subsidiary Blue Microphones is also focused on earning revenue from streaming customers, recently announcing the new Yeti X USB microphone will launch in mid-October for $169.99. That updated model includes exterior hardware options for monitoring voice levels in real time so streamers can make adjustments on the fly without having to click away from their game.
Live streams are becoming a major component of both the competitive eSports arena and the overall gaming community, with stream viewership spiking significantly between 2018 – 2019.
Sports games are currently dominating streaming platforms with the recent release of titles like NBA 2K20 and the impending release of WWE 2K20 next month. The launch of Gears 5 through the Xbox Ultimate Game Pass service has also seen a bump in multiplayer streaming views as a larger number of players gain access to the highly-anticipated title without having to pay the full retail price.
