Google is reportedly buying Twitch for $1 billion

BANGALORE, INDIA: Google has signed a deal to buy game-livestreaming firm Twitch for $1 billion, reported Venturebeat. The deal could open a multibillion dollar opportunity for advertisers. Google and Twitch not commented on this deal so far.

Google's YouTube division is reportedly in charge of the acquisition, which would represent a significant transformation of YouTube's business. Google acquired YouTube in 2006 for $1.65 billion. YouTube is the leading platform to upload, view, and share videos catering to 1 billion users worldwide per month.

San Francisco-based Twitch is a live streaming video platform focused on e-sports and video gaming. The website was launched in June 2011 by Justin Kan and Emmett Shear as a subsidiary of Justin.tv focused on gaming-related content.

It enables people to broadcast their own gameplay sessions on the PC, and gaming colsoles such as Xbox One, or PlayStation 4 to online viewers. According to internal analytics from 2013, there are over 43 million viewers on Twitch every month, with the average viewer watching an hour and a half a day. As of 2014, Twitch is the fourth largest source of internet traffic during peak times in the United States, behind Netflix, Google, and Apple.

Twitch also distributes shows from partners including CBS Interactive's GameSpot, Joystiq, and Destructoid, all gaming-news sites.