Top executives at Google’s YouTube video unit saw Twitch, the online video-game broadcaster, as the ESPN of the future. When longtime Google executive Susan Wojcicki became chief of YouTube in February, those executives convinced her to pursue an acquisition.
By May of this year, Twitch had signed a term sheet agreeing to be acquired by YouTube for more than $1 billion. The YouTube team celebrated the victory.
But almost immediately afterwards, things got bumpy.