industry news
Google Entering Game Industry Through Valve
Posted by Mike Fahey at 12:20 AM on September 18, 2008
So the folks at Forbes are thinking that Google could become a big name in the games industry, and now rumours are swirling about the internets that they are planning on doing just that in the way of all giant corporations with way too much money - buying someone else. In this case, the target is Valve, makers of Half-Life, Portal, Team Fortress 2, and oh yeah, Steam. The enormously popular digital gaming distribution platform would indeed present a tasty takeover target for the company that loves making money off the internet.
The rumours originate with The Inquirer, which cites well placed sources saying that such a purchase is not only possible, but imminent, as in "any second now". Our take on the rumour? Very iffy. These sort of stories generally don't just pop up one day, though of course Valve's Doug Lombardi has stated that they're willing to be bought. We've contacted Valve for comment and will let you know as soon as we hear back.
Google to buy Valve [The Inquirer]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
Dragonzigg
Posted 1:33 AM 18/9/08
I can see this happening, and I don't think it would be a bad move for Valve, but I'd prefer to see them stay independent. Also, I'm sure this isn't happening that soon, more news would have leaked if it had.
Dragonzigg
Kajetan
Posted 1:33 AM 18/9/08
@antialias02:
"It may be rumor-mongering, but rumors are often based in a grain of truth."
True. But it is only a rumor. And it's coming from the Inquirer. Don't forget that, when you start making assumptions and speculations.
But, hey, it's the Internets. Everybody can make a fool of himself, even me :)
Kajetan
RaptureScientist
Posted 1:32 AM 18/9/08
Google buying Valve would be great, it means that Valve will go to a logical and innovative company, not EA or ActiBlizzard
RaptureScientist
KSPRAYDAD
Posted 1:31 AM 18/9/08
Guess who Google is coziest with on the console front.
PS4 a Google/SONY cloud product.
KSPRAYDAD
CreativeCat89
Posted 1:31 AM 18/9/08
Better Google than EA
CreativeCat89
Krackatoa
Posted 1:30 AM 18/9/08
@antialias02: As for EA buying Valve, I wouldn't want to see that in the slightest. After their current PR fiasco with Spore, and their tactics with Take-Two to strongarm the entire sports genre, competition would never be able to fully take part of the awesomeness of Steam unless EA had a gigantic leaf-turn.
Krackatoa
Sullyville
Posted 1:29 AM 18/9/08
I believe this.
It's the smartest move
that Google could make.
And if the money's right,
I can't see Gabe Newell
balking, as long as
Google lets them keep
doing what they're good
at doing.
Sullyville
B33
Posted 1:29 AM 18/9/08
@thefais: Google versus EA...
The battle of who can toss around more money...
B33
pcgecko85
Posted 1:28 AM 18/9/08
I can see Google buying Steam, but not Valve
pcgecko85
Krackatoa
Posted 1:28 AM 18/9/08
@Krackatoa: Ha! I knew it. Currently Valve is only engaged in a distribution deal with EA and isn't owned by a larger corporation.
Hmm... Google does have the capital to propel Valve forward at breakneck speeds, it would be a curious relationship.
Krackatoa
thefais
Posted 1:25 AM 18/9/08
I for one welcome our new Google overlords.
thefais
SavidDaunders
Posted 1:23 AM 18/9/08
Wow, that would be horrible.
Google doesn't have all your game data, yet, so it makes sense.
SavidDaunders
akif24
Posted 1:20 AM 18/9/08
One day the big 3 are going to be Google, EA and Apple :S
akif24
antialias02
Posted 1:16 AM 18/9/08
@Kajetan:
@M*A*S*H:
The last time I read about the Inquirer breaking a ludicrous-sounding story at the GDC, it was regarding Guild Wars completely cancelling their campaign system, announcing an honest-to-goodness expansion pack, and the beginning of development of Guild Wars 2.
And that sounded completely *insane* at the time... until Arena Net announced it shortly thereafter. But of course, everyone was all, "Oh, don't listen to them, it's the Inquirer."
It may be rumor-mongering, but rumors are often based in a grain of truth.
Frankly, as for myself, I'd rather EA bought Valve than Google.
antialias02
Raynre
Posted 1:15 AM 18/9/08
No. No no nonononono.
DONT GOOGLE MY STEAM.
Raynre
KSPRAYDAD
Posted 1:14 AM 18/9/08
@TouchMyBox: So here is Forbes a week ago talking about the same ideas:
[www.forbes.com]
KSPRAYDAD
M*A*S*H
Posted 1:11 AM 18/9/08
There's more chance of valve buying google if the inquirer's reporting this.
M*A*S*H
MOP88
Posted 1:11 AM 18/9/08
This cannot happen. Valve is supposed to take over and put all you little bitches in your DRM-free place. IF they go down, I might just as well put on a grey overall and shave my head to work in the average-factory.
MOP88
Chadders
Posted 1:09 AM 18/9/08
Seems like a natural fit, in terms of commitment to quality & design & employment philosophies.
Hope this gets me my Wii version of Portal and TF2 that I've been hankering for.
Chadders
TouchMyBox
Posted 1:05 AM 18/9/08
Why is every blog linking to this Inquirer article? They have a history of making shit up.
TouchMyBox
lunate
Posted 1:02 AM 18/9/08
THE NEWS IS A LIE!!!
THE NEWS IS A LIE!!!
lunate
Kimani
Posted 1:01 AM 18/9/08
Yeah, there's nothing really in it for Valve.
The only way I'd be behind it would be if Google used their superior UI team to make Steam's interface a little more solid.
Kimani
cubed2D
Posted 12:59 AM 18/9/08
the inquirer is pritty must the most untrustorthy website on the net.
Also, google may have alot of money but i dont see whats in it for valve. they have a stong product line, they have the capital to self finance, if they did need money im sure in any discussion with a publisher would be very favorable towards them, and they pritty much own the pc game download market, they dont really gain ainything much by selling themselves.
cubed2D
njhardcoreguy
Posted 12:59 AM 18/9/08
Big Brother is watching...
...you frag engineers.
njhardcoreguy
NintendoFanBoy64
Posted 12:57 AM 18/9/08
NEWS:
Google buys Valve just for Steam tech, cancels ALL forthcoming videogames.
NintendoFanBoy64
KSPRAYDAD
Posted 12:57 AM 18/9/08
@marmidukestank: Why not buy Valve/Steam and then spin off Valve (MS (likely) or SONY)...all Google wants imo would be the distribution and ad opportunities of Steam.
KSPRAYDAD
marmidukestank
Posted 12:54 AM 18/9/08
Valve can't get any better, at this stage. Why doesn't Google buy a company that totally sucks, like Ubisoft, and inject some money into making great games from them?
I don't see Google buying a majority share in Valve as benefiting the industry at all. Google's place in the industry would be just accepting the profits of Valve's success.
marmidukestank
Mustakrakish
Posted 12:52 AM 18/9/08
Oh God no! I do NOT want this.
Mustakrakish
Spoony Bard
Posted 12:51 AM 18/9/08
I see this as speculation on their part, just like the Apple branded console.
Yeah, it could happen, but will it?
Forecasters suck.
Spoony Bard
KSPRAYDAD
Posted 12:51 AM 18/9/08
BTW...I'd see this as a defensive move by Google to ensure they have a ad revenue stream from games before Apple launches a full on games distribution assault through iTunes.
KSPRAYDAD
Señor Cagon
Posted 12:51 AM 18/9/08
As long as Gabe Newell stays in the company I dont really care... Gabe is #1 on my top dev list followed by Miyamoto and from all the mega corporations I find Google the most "friendly" due to having a bunch of free services and apps so Google party boopers STFU
Señor Cagon
cnas
Posted 12:48 AM 18/9/08
i wouldn't mind a google search tool in counter-strike 1.6 :P No way of searching for servers by their name is wtf...
cnas
KSPRAYDAD
Posted 12:48 AM 18/9/08
I'd like to give props to BruceonGames...he mentioned Google and MS getting into a bidding war over Steam a year ago.
He is a good read...bookmark him.
Quote:
There is a very highly successful game developer called Valve. They are responsible for one of the greatest ever games, Half Life. And now The Orange Box compilation. In 2002 they launched a digital game download service for PCs called Steam and made it available to the whole industry, I tried to get Codemasters to adopt it. This has evolved now to include social networking. And it does everything in the advantages list above. Steam is one of the biggest and most important things to have ever happened in gaming. If Microsoft and Google had any sense they would be outbidding each other to pay $billions to buy Steam now. It will generate far more revenue than Facebook ever will.
[www.bruceongames.com]
KSPRAYDAD
Melee Is Best
Posted 12:48 AM 18/9/08
If google's homepage has ads for Left 4 Dead, then i'm all for it.
Melee Is Best
Jakey2.0
Posted 12:47 AM 18/9/08
Google's core business is advertising. Steam offers so many avenues for gaining an understanding of the online habits and psychology of gamers in order for them to target their advertising. There may be something in this rumour, despite it being reported on the Inquirer ;)
It is only speculation, though, and the Inquirer would do well to learn how to use question marks in article titles to reflect this...
Jakey2.0
ChuckNorrisKommando
Posted 12:47 AM 18/9/08
Dr wallace: "It has come to my attention that some have lately called me a collaborator, as if such a term were shameful. I ask you, what greater endeavor exists than that of collaboration? In our current unparalleled enterprise, refusal to collaborate is simply a refusal to grow - an insistence on suicide, if you will. Did the lungfish refuse to breathe air? It did not. It crept forth boldly while its brethren remained in the blackest ocean abyss, with lidless eyes forever staring at the dark, ignorant and doomed despite their eternal vigilance. Would we model ourselves on the trilobite? Are all the accomplishments of humanity fated to be nothing more than a layer of broken plastic shards thinly strewn across a fossil bed, sandwiched between the Burgess shale and an eon's worth of mud? In order to be true to our nature, and our destiny, we must aspire to greater things. We have outgrown our cradle. It is futile to cry for mother's milk, when our true sustenance awaits us among the stars. And only the universal union that small minds call 'The Combine' can carry us there. Therefore I say, yes, I am a collaborator. We must all collaborate, willingly, eagerly, if we expect to reap the benefits of unification. And reap we shall."
ChuckNorrisKommando
Syril
Posted 12:45 AM 18/9/08
If any company's likely to launch SkyNet, it's Google.
Syril
arstal
Posted 12:44 AM 18/9/08
I can't see anything good coming from this, but I can't see anything particularly bad either.
arstal
Reetesh
Posted 12:44 AM 18/9/08
I like Google, I like Valve... what will happen if both join hands? should be good, but still have some doubts about it.
Reetesh
Gwog
Posted 12:44 AM 18/9/08
This seems highly unlikely, although at some point I'm sure Newell and whatever other Valve partners there are *will* want to cash out in a major way and go buy their own country and retire (or, more likely, start some new enterprise).
It would be really nice to see a company who's motto is "Do no evil" take over Steam, though, which right now is kind of fucked on a philosophical level.
Gwog
lumpi
Posted 12:43 AM 18/9/08
No no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no.
Can't happen. No way.
lumpi
greyhoundbus
Posted 12:41 AM 18/9/08
Will Steam have a 'I Feel Lucky' button that automatically downloads a demo for whatever game it decides you'll probably like?
greyhoundbus
PatMan33
Posted 12:41 AM 18/9/08
I welcome them!
PatMan33
GrandfatherParadox
Posted 12:40 AM 18/9/08
I hope Google puts those shysters out of business.
GrandfatherParadox
dowingba
Posted 12:39 AM 18/9/08
I'm gonna go out on a limb here and say this is false.
dowingba
AndyboyH
Posted 12:39 AM 18/9/08
Personally, I've got a lot of respect for Valve other than just because they make great games - a year ago, I approached them for some donations to a charity cause in the UK. They FedEx-ed me a ton of stuff and our charity auction had a great success (the free Xbox 360 from Microsoft helped too)
the guys at Valve are good guys in general, not just cos they make great games. I think they'd fit into google's ethos well, but I think valve would be insane to sell out to google. The big G isn't as great as they try to appear, and I'd rather that my valve wasn't googled (as [Dextr] said)
AndyboyH
penetraitor
Posted 12:35 AM 18/9/08
Valve is good because they operate by their own rules not anybody else's...not even their own.
penetraitor
zebber
Posted 12:34 AM 18/9/08
Because of Steam, I'd really prefer Valve never fall into the jaws of any other company, unless it was to save Valve at some unforseen point in the future. I'd hate to see the single shining example of digital game distribution changed, at least by people outside Valve.
If Google wants to work WITH Valve on something, that's great. But let's hope Valve stays Valve for the time being.
zebber
Zerod Zunaro
Posted 12:33 AM 18/9/08
Does that mean Half-Life III will stare Google Freeman?
Zerod Zunaro
Krackatoa
Posted 12:32 AM 18/9/08
I would love to see this happen, if only to be reassured that when Google takes over the world, that at least we'll have an awesome games library.
Gabe Newell once said that he would love to see Steam make every PC game released available for purchase. I, for one, am a hundred percent for such a game-tatorship. With Google's liberating outlook on delivering internets and technology to the masses, I could certainly see them putting enough of the cash moneys into Steam to propel it even further and faster forward than before... and since it wouldn't be owned by Vivendi/Universal anymore, wouldn't this make them less partial to exclude competition?
I might be missing some corporate hierarchies in here somewhere, making my point moot, sorry. It's just that Steam's a great system, and Google's not run by idiots...
Krackatoa
King of Fun UK
Posted 12:32 AM 18/9/08
Who's to say that Google isn't just wanting to buy a stake in Steam? Steam if a fantastic platform, Google could use it as a distribution network.
Google have no interest in the games side of things, or at least I hope not.
King of Fun UK
blackadvent
Posted 12:31 AM 18/9/08
I'm not really liking the amount of attempted company consolidation here.
blackadvent
Thanatos
Posted 12:31 AM 18/9/08
@Daemonstalker: But Valve is using EA as its distributor already.
Thanatos
F22
Posted 12:31 AM 18/9/08
imagine the two titans of Google and Apple launching consoles alongside Microsoft Sony and Nintendo ? holy shit that would be the war to end all wars type of a fight!
F22
Thanatos
Posted 12:31 AM 18/9/08
@Thanatos: was suppose to have /sarcasm at the end
Thanatos
Daemonstalker
Posted 12:30 AM 18/9/08
Rather Google than say...EA
Daemonstalker
Thanatos
Posted 12:30 AM 18/9/08
Its from The Inquirer so the info is VERY RELIABLE
Thanatos
outofreach
Posted 12:29 AM 18/9/08
Valve is better off being picked up by a massive games publisher like EA or Activision.....
That way they could make use of the steam service they've been building over the years...
What games would google have to release on the service? none, unless it went on a massive publisher / developer buying spree.
outofreach
Llost
Posted 12:29 AM 18/9/08
It'd not really help, Valve = super successful company with a good direction and good games. Google can add nothing to the company except money but I doubt they are short on that and they'd most likely just interfere with the Valve vision.
Llost
fdisk
Posted 12:28 AM 18/9/08
Valve is already the leader in digital distribution, plus the rest of the services Steam offers and their games are all top notch.
Valve has the potential to become an industry behemoth on its own, I just don't see Gabe Newell wanting to sell when there's so much potential for profit without being bought out.
fdisk
TheLegendof_Erick
Posted 12:27 AM 18/9/08
Valve doesn't need Google - Google needs Valve/Steam if they want a slice of the games pie
TheLegendof_Erick
UkGuru
Posted 12:27 AM 18/9/08
I wouldn't mind Valve being bought by Google. It would ensure that they'd have to make good PS3 games. Sony's relationship with Google is good. Gabe Newell will also get as many cakes as he wants - so its win/win.
UkGuru
[Dextr]
Posted 12:26 AM 18/9/08
I'd rather my Valve was not Googled, thanks.
wait.. what?
[Dextr]
Kajetan
Posted 12:26 AM 18/9/08
The Inquirer says that?
Everybody calm down :)
Kajetan
NorthernAvengeR
Posted 12:25 AM 18/9/08
In-game google search bar in all valve games.
NorthernAvengeR
CockroachMan
Posted 12:24 AM 18/9/08
@CockroachMan: *them
CockroachMan
CockroachMan
Posted 12:24 AM 18/9/08
Nah.. I don't really see any reason for google to buy then..
Some partnership with Valve to use Steam users information on google services could happen and would be nice though..
CockroachMan
Llost
Posted 12:23 AM 18/9/08
Go away google, your not wanted here.
Llost
Machzy
Posted 12:23 AM 18/9/08
As long as they don't ruin Portal 2 I'll be happy.
Machzy
fragilenin
Posted 12:23 AM 18/9/08
don't see it happening
fragilenin
FLYBOY611
Posted 1:51 AM 18/9/08
I'd have to say im down with google. Better than most other companies.
FLYBOY611
Cultmember
Posted 1:50 AM 18/9/08
This is like the Reese's Peanut Butter Cup of paranoia. You just smeared Huxley on my Orwell. And I accidentally dropped some Orwell on your Huxley. Why not combine the two?
Cultmember
Talleh
Posted 1:42 AM 18/9/08
Man...I really would hate this. Between google slowly being more evil, and Valve always doing things their way, when it's done, and living by nobodies rules but their own. And because of it, their products are only done and released when they are happy enough with them, not when some big corporate backer tells them it's time to put something out. If valve weren't so huge, this would be the big guy taking over the little guy. Well, this is more of a giant taking over a smaller giant.
Talleh
Patch21
Posted 1:41 AM 18/9/08
at least the hazard suit will have search capabilities
Patch21
McClain
Posted 1:40 AM 18/9/08
Google getting into the game market is not bad but isn't extraordinary. Google probably wouldn't stifle creative freedom. Google has mostly been a very logical company, trying new things and not screwing the customer from what I've seen, though I could have missed something.
McClain
antialias02
Posted 1:38 AM 18/9/08
@Señor Cagon: Google may have free apps, but the only reason it's free is because you're basically giving away information to them. Microsoft may have had, at one time, a monopoly on access to information (OS/Browser), but Google stands poised to hold a monopoly on information itself - email/websites/documents/etc, all searchable and all under their roof. It's a little creepy to think about.
Let's just hope and pray they continue to live the "Don't be evil," mantra - though considering their history with China, I'm not so sure I'd bet on it.
antialias02
j14rk1n
Posted 2:16 AM 18/9/08
I really don't want to see this happen. Valve is one of the best developers in the industry right now, they don't need anyone telling them what to do after being snapped up. Even Google, which is a pretty stable company to say the least.
j14rk1n
JAGJEET
Posted 2:05 AM 18/9/08
@ChuckNorrisKommando: THAT HAS GOT to go in Week in Comments
JAGJEET
FranUnFine
Posted 2:04 AM 18/9/08
@antialias02: You know, according to the webcomic "Ubersoft", Googles INofficial motto is: "Don't be evil, enable it."^^
I think this would be a perfect fit, isn't Valve using Steam as a tool to gather information about players' systems and gaming habits?
FranUnFine
dionion
Posted 1:59 AM 18/9/08
God, I hate the Inquirer... Worst. Tech-related site. Ever.
dionion
Mrrix32
Posted 2:31 AM 18/9/08
@thefais: *New* Google Overlords??? :P
Last time I said "Google will never buy them" was about YouTube.... They bought it the very next day :(
Mrrix32
That Boy Baked
Posted 2:27 AM 18/9/08
The Inquirer kotaku, the fucking INQUIRER? I just lost almost all respect for this gaming blog.
That Boy Baked
bakakensai
Posted 2:55 AM 18/9/08
@TheLegendof_Erick:
They need each other IMO, Google needs a trusted online distribution, Valve needs a bigger customer base. It would be a win-win merger.
bakakensai
wild_world_girl
Posted 2:55 AM 18/9/08
@That Boy Baked: You aren't confusing the Inquirer with the Enquirer are you?
wild_world_girl
gblock
Posted 6:41 AM 18/9/08
Google does not need Valve. Valve does not need Google.
There's no win-win here. Being a part of Google wouldn't magically enable Valve to conquer the known universe, and Valve has nothing that can help Google reach its customers better. "win-win", even in that awful 80s oh-my-god-please-stop-using-it way, generally meant that both sides got strong benefits from doing so. Steam doesn't magically get better by being owned by Google. Half Life 3 doesn't mystically gain sentience and take over the planet. Google has no problem with the search rank of head crabs, Google's 'dog friendly' policy does not need to extend to semi-intelligent robotic guards, and while it's busy hiring a large number of PhD students, it's hardly going to pay a huge price just to be able to employ Gordon Freeman.
Who benefits here? I have no doubt that there are a huge number of people at Google who would love to work at Valve, and I bet there are more than a few who think that working at Google would be landing a great job. But job envy isn't a reason for a merger either.
Sure, it could be true, but it doesn't make a whole hell of a lot of sense. Which, of course, is why it's in the Inquirer, which gives as much space to crop circles and Britney's alien impregnation as it does to fact-based reporting. Sure, you can't not report it; I get that. But perhaps a bit more... distance would be appropriate. If a baby, let's say an inqui..sitive baby, was to rub its hands in its feces and then reach out to you to be picked up, would you cuddle it or hold it at arms distance?
Air kisses from three feet away next time.
gblock
thenino85
Posted 6:56 AM 18/9/08
P.S. I am not a crazy person.
thenino85
thenino85
Posted 6:55 AM 18/9/08
OK, let's suppose that this is true. Big supposition, given the source, but let's assume it's true.
Google at this point is powerful enough to get the FCC to change its rules on spectrum auditions and has used its power to get the federal government to do what Google wants for its own profit. Don't make any mistake, the open spectrum auctions went about because Google wanted to make money and have other people do the messy work of the massive undertaking of creating and maintaining a national network, not because it cares about you personally. Google actively engages in censoring the Internet of over a billion people and actively denies them personal liberties. In the West, it's for all intents and purposes the gateway to the Internet. Google can effectively destroy a company by down ranking their website in browsing results. Now, in addition to cataloging your browsing history, shopping habits, (and your e-mail if you let them), you want to let them catalog your gaming habits.
AND YOU ALL ARE OK WITH THIS?
Google has more control over your life than Microsoft even did, and you all want MORE?!
What alternative universe did I wake up in this morning?
thenino85
antisniper
Posted 7:54 AM 18/9/08
Google has more control, more power than any other interactive company. If it does enter the games industry, even EA would struggle to compete, since Google has MORE, MOAR I SAY, money than EA. Google has enough power as it is, they don't need more.
antisniper
mcool93
Posted 12:51 PM 18/9/08
Valve independent, plz
mcool93
dowingba
Posted 1:20 PM 18/9/08
@thenino85: Could have fooled me!
dowingba
paydirt76
Posted 12:01 AM 19/9/08
The Inquirer (does not equal) the National Enquirer
Though, the Inquirer does post a good number of rumors, and at least qualifies rumors as rumors.
paydirt76
nikoPSK
Posted 8:52 AM 19/9/08
HELL NO. :(
nikoPSK