Google's YouTube will buy Twitch for a cool $1 billion, making for one of the biggest acquisitions in the history of the video website.

According to Variety, sources close to the deal said that the acquisition involves an all-cash offer on YouTube's part for Twitch, the video game streaming company, which was founded in June 2011 by Justin Kan and Emmett Shear. The Twitch service allows gamers to upload and stream their gameplay straight from PC, Xbox One and PlayStation 4 consoles.

Variety's sources say that YouTube is expecting U.S. regulators to challenge the deal because of worries of anticompetitive issues in the online-video market, given that YouTube is thought to be the No. 1 platform for Internet video.

The official announcement of the acquisition has yet to take place, but you can bet we'll cover it as more information from named sources is revealed in the coming days.

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