YouTube (GOOG) is buying video gaming site Twitch for a eyebrow-raising $1 billion — the largest such move in YouTube’s history.
Variety is reporting that YouTube, which Google bought in 2006, is eager to add the site that allows users upload and watch free, live gameplay videos. The games are streamed from Microsoft Xbox and PlayStation 4 consoles.
The deal is fitting as gameplay videos are one of YouTube’s most popular selected categories.
YouTube and Twitch reps are remaining mum on the news.
The deal is not to come without some predicted complications.
YouTube is preparing for U.S. regulators to challenge the Twitch deal, according to sources. YouTube is far and away the No. 1 platform for Internet video, serving more than 6 billion hours of video per month to 1 billion users worldwide, and the company expects the Justice Department to take a hard look at whether buying Twitch raises anticompetitive issues in the online-video market.
Twitch was founded in 2011 and has since raised more than $35 million in startup funding.
It states that it has more than 45 million monthly users.
GOOG stock is down nearly 7% year to date.