BUSINESS

YouTube To Buy Twitch Streaming Service For $1 Billion: Report

07/25/2014 05:34 EDT | Updated 07/25/2014 05:59 EDT

YouTube, the video sharing site used by millions to host everything from cooking tutorials to viral videos could soon see more content from gamers if the Google subsidiary gets its way.

The company has reportedly offered to buy Twitch, a video game streaming service for $1 billion, according to Venture Beat.

The deal is still unconfirmed but sources close to the video game live-streaming service say some investors could see returns worth multiple times the original amount they invested.

Talks about an acquisition by Google have swirled since May, according to Variety. If the deal goes through, Twitch's 45 million monthly users would bolster YouTube's offerings in the video game category.

Twitch says the average user watches about 106 minutes of video a day via users who air their content from their Xbox One or PlayStation 4 gaming consoles. Aside from its 300,000 base of paid subscribers, the service streams ads to generate revenue.

While $1 billion might seem like a lot for a service that lets people watch other people play video games, the industry of E-sports has grown in popularity over the last decade. Tournaments like EVO, Major League Gaming and the Global Starcraft II League have also helped, contributing to an industry worth $4.7 billion, according to eSports Digest.

For more on why this potential acquisition matters, give the video above a watch.

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