Twitch, the platform used by Xbox One (as well as PS4) to share game videos, looks set to be acquired by YouTube in a deal estimated to be worth over $1 billion. YouTube was purchased by Google back in 2006, and it would seem like a fairly natural home for the game video streaming service. A natural home it may be, but any deal will come as a disappointment to Microsoft who had previously expressed interest in purchasing Twitch.
The news comes courtesy of Variety, citing anonymous "sources familiar with the pact", which says YouTube is braced for a battle with regulators who are likely to be concerned that any such acquisition could have anti-competitive implications.
This really would be a meeting of two giants. YouTube is the undisputed king of online video, and Twitch has carved out a unique niche for itself in the console market. Twitch and YouTube do seem like happy bedfellow -- compare that to the interesting position of Microsoft owning Twitch as it continues to be used on rival Sony consoles.
Right now, there is no word on how far off any potential deal could be, but we'll keep you updated as soon as anything breaks. Neither Google nor Twitch are willing to comment on the rumors at the moment.