Brett Molina

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Google-owned video service YouTube may be on the verge of a major acquisition.

Variety reports YouTube will acquire Twitch, the video game streaming service that surged in popularity with the launch of the PlayStation 4 and Xbox One, for $1 billion.

The report, which cites "sources familiar with the pact," is an all-cash offer and will be announced imminently.

Twitch declined comment to USA Today on the report.

A Wall Street Journal report downplayed the possibility of an imminent sale, claiming the two companies were in talks, and that Twitch could end up raising more funding instead of selling the company.

According to The Verge, Google is one of several companies interested in Twitch. Xbox One makers Microsoft were reportedly among the companies that made a serious offer.

The service allows video game players to stream live action from their devices. Initially available on PC, Twitch launched apps for the PS4 and Xbox One video game consoles that let users directly broadcast their gameplay from the device.

Twitch claims more than 1 million broadcasters and 45 million visitors to its site each month, with each visitor spending an average of 106 minutes a day on their website.

Follow Brett Molina on Twitter: @bam923.