Twitch is close to securing a deal with YouTube for $1 billion, with the latter having to fend off other suitors such as Microsoft. The two companies have agreed on the price and are negotiating how independent the company will be and whether the brand will remain after integration into Google's portfolio.
Twitch is said to have accepted YouTube's offer as it believes the company can help it become a definitive platform for watching and streaming live video gaming. While many may wonder who watches live video of other people paying games, Twitch said in February it had more than 45 million monthly unique visitors, including one million people who create and stream video content on the site.
The company, which is expected to post a profit this year, raised $30 million in 2013, but that would not be enough to keep up with its scaling up of operations.
YouTube will benefit from the acquisition and hopes for a boost to its own live-streaming service for games, music, sports and news, as well as events such as Felix Baumgartner's jump from space. YouTube lagged behind Twitch in April, which accounted for 44 percent of the streaming traffic as of April 7.