The Daily Caller

The Daily Caller
Visitors stand in front of a logo of YouTube at the YouTube Space Tokyo, operated by Google, in Tokyo February 14, 2013. REUTERS/Shohei Miyano (JAPAN - Tags: SCIENCE TECHNOLOGY BUSINESS LOGO) - RTR3DRT4 Visitors stand in front of a logo of YouTube at the YouTube Space Tokyo, operated by Google, in Tokyo February 14, 2013. REUTERS/Shohei Miyano (JAPAN - Tags: SCIENCE TECHNOLOGY BUSINESS LOGO) - RTR3DRT4  

YouTube To Acquire Twitch For $1 Billion

Variety reports YouTube is gearing up to purchase Twitch, the fourth largest source of Internet traffic in the United States. According to sources familiar with the negotiations, YouTube will acquire Twitch, the largest video game streaming service in the world, for $1 billion.

Twitch is the gaming subset of Justin.tv, launched in 2007 by Justin Kan and Emmett Shear. It allows users to watch and share videos for free and its primary feature is live streaming. Twitch boasts over 43 million viewers a month.

Twitch is heavily involved with e-Sports, providing live coverage and streaming for audiences, similar to ESPN. With the release of the PS4 and Xbox One, Twitch has expanded beyond the PC by offering apps that allow users to stream directly from their consoles.

If YouTube acquires Twitch, it will be the largest purchase in the companies history since it’s acquisition by Google in 2006 for $1.65 billion.

YouTube and Twitch declined to comment on the matter.