Variety: Google is near buying game video service Twitch (update)

AT&T may not be the only one landing a big acquisition this weekend. Variety claims that Google's YouTube division has struck a deal to buy Twitch, the game-focused video streaming service, for more than $1 billion. Neither side is commenting on the rumor, but it's easy to see why YouTube would splurge -- Twitch has more online viewers than some big sports networks, and a takeover would immediately secure a larger presence in the gaming world. Google is reportedly expecting a battle with regulators, which might argue that the deal stifles competition with other internet video providers. If the scoop is accurate, though, the company clearly believes that the expanded audience is worth the hassle.

Update: The Wall Street Journal corroborates the rumors, but says that it's still early; Twitch may ultimately raise funding rather than sell itself off. The video-streaming service has told Engadget that it currently has no comment on the report.