Mountain View – Google Inc. is in talks to acquire the video game streaming service – Twitch, and have later plans to merge it with YouTube.

According to new rumor, The video game streaming service, Twitch and YouTube might merge as Google has offered over $1 billion to acquire the startup.

World’s number one online video streaming service ‘YouTube’, is making its biggest move yet by acquiring the renowned video games streaming service ‘Twitch’ for more than $1 billion. The news came on Sunday from unnamed sources familiar with the proceedings of the deal. Official announcement of the deal is yet to be made.

Twitch was launched back in June 2011 by Justin Kan and Emmett Shear, co-founders of and has now become the most popular Internet destination for watching and broadcasting video game play. The company has raised roughly $35 million till now. It allows users broadcast their game-play sessions on PCs, Xbox One or PS4 to spectators in real-time. Twitch has 45 million monthly users and is one of the first services to host live streams of gaming videos.

By acquiring Twitch, YouTube who is by far the biggest online streaming service for free videos, serving more than 6 billion hours of video per month and hosts 1 billion users across the world, aspires to make its entry in the highly competitive gaming sector.

Mark Fisher, Qwilt’s vice president of business development said, “Twitch’s large and growing audience spends a lot of time sharing and viewing live gaming videos, making it attractive to advertisers. YouTube doesn’t “have the engagement, and engagement is what drives advertising,” Mr. Fisher added. “Google can try to build this on its own or they can buy something that’s already out there and doing well.”

While neither of the companies have confirmed on the deal, Twitch’s PR director shared a message on Twitter earlier Monday. “For those asking about the story today, Twitch doesn’t comment on rumors. – Chase (@ChasejustChase) May 18, 2014”. YouTube is awaiting a go-ahead from its Justice Department to close the deal, reports Variety.

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