The three-year old site apparently turned down an offer from Microsoft in favour of a deal from Google, which wants to merge Twitch and its 45 million users with YouTube

This article is more than 6 years old

This article is more than 6 years old

Google is reported to be in talks to acquire video game streaming service Twitch for $1bn.

The deal, reported by Variety, would be the biggest for YouTube since its purchase by Google in 2006 for $1.65bn. Twitch reportedly chose Google over multiple other offers including one from Microsoft, according to sources talking to technology site the Verge, although the talks are still at an early stage according the Wall Street Journal.

San Francisco-based Twitch allows users to stream live gameplay videos from desktop computers, as well as Microsoft Xbox One and Sony’s PlayStation 4, which both allow players to upload their own videos direct from the living room.

Launched in June 2011, Twitch has quickly become a destination for broadcasting gaming videos and popular “Let’s Play” videos, claiming more than 45 million monthly users and 1 million users who upload their own videos each month.

Twitch has already surpassed Facebook, Amazon and US TV streaming service Hulu in peak traffic, according to infrastructure firm DeepField. It has secured itself as the place to watch major e-sports tournaments, where video games are played competitively for cash prizes.

The startup raised $20m from investors in 2013, including game publisher Take-Two Interactive, which publishes the Grand Theft Auto series of games among others.

YouTube has made efforts in the past to attract game players to upload their videos to the service, introducing a new platform for gaming video streaming at the annual Game Developers Conference in 2013.

Let’s Play videos have become increasingly popular on YouTube, with some YouTube personalities such as the Brighton-based Swede PewDiePie generating 296.6m video views from 26.4m subscribers, making him the biggest star on YouTube in April beating traditional celebrities and brands like Katy Perry, Justin Bieber and Disney.

Google’s purchase of Twitch would enable it to tap into the rapidly rising trend of video game streaming and videos around video games, which have become a phenomenon in the last couple of years.

Google said it had no comment on the reports.

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