Online video streaming company YouTube is said to have bought US-based live-video streaming service Twitch, backed by Take-Two Interactive Software, for more than $1bn, Variety has reported.
Twitch focuses on streaming live gaming videos, from individual “let’s plays” where users watch others play games to professional gaming competitions.
Take-Two Interactive Software, a developer, publisher and distributor of computer games, invested in Twitch’s $20m series C round in September 2013, along with venture capital firms Bessemer Venture Partners, Alsop Louie Partners, Thrive Capital and WestSummit Capital.
Twitch previously raised $15m in a 2012 series B round featuring Bessemer, Alsop Louie and Draper Associates.
Google acquired YouTube for $1.65bn in 2006, and the Twitch deal would be YouTube’s largest to date.
According to Variety’s sources, YouTube is aware this acquisition may be challenged under anticompetitive regulations and is preparing for that possibility.