Google's YouTube Reaches Deal to Purchase Twitch For $1 Billion

May 20, 2014 11:16 AM EDT | Matt Mercuro

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Google's YouTube unit has reportedly reached a deal to purchase videogame-streaming service Twitch for over $1 billion, according to entertainment news publication Variety.

Both Google and Twitch have declined to comment on the deal yet.

The all-cash deal will be announced "imminently," according to the report.

The San Francisco-based company allows people to broadcast live video streams of themselves playing videogames and includes social networking features that lets gams communicate with others during the broadcasts.

Over 45 million gamers visit the site every month, according to Twitch.

Twitch launched back in June 2011 as Justin.tv.

Video games are among the most popular videos on YouTube, the top video website in the world.

YouTube doesn't "have the engagement, and engagement is what drives advertising," said Mark Fisher, Qwilt's vice president of business development according to The Wall-Street Journal. "Google can try to build this on its own or they can buy something that's already out there and doing well."

Back in September, Twitch raised $20 million in funding from companies like Thrive Capital, WestSummit Capital and Take-Two Interactive Software Inc, among others, according to Reuters.

The news comes the same week that Google announced it would purchase Divide, a company whose software allows corporations to manage personal smartphones that consumers use while on the job.

Divide, formerly known as Enterproid, was founded back in 2010 by former Morgan Stanley executives, according to the Associated Press.

A deal between the two companies would help Google's widen its corporate usage of tablets and smartphones running on Android.

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