Citing unnamed sources close to the deal, Variety claims the $1 billion figure will change hands in an all-cash deal, with an official announcement and full details arriving soon. As Variety points out, this deal would be the biggest in YouTube's history, nearly approaching the $1.65 billion Google paid for the streaming video giant in 2006.
It's unknown how this arrangement will affect Twitch or YouTube going forward, though Variety claims that YouTube is preparing for any pushback U.S. regulators may present once the deal becomes public knowledge. We've attempted to contact Twitch, YouTube and Google for further information, but have yet to hear back.
Update: The Wall Street Journal offers a conflicting report, claiming that while YouTube is in talks to acquire Twitch, the negotiations are still "at an early stage, and a deal isn't imminent." Like Variety, the Wall Street Journal cites anonymous sources close to the deal.