Google is reportedly eyeing up streaming media service Twitch, which specialises in gaming videos.
According to sources quoted by the Wall Street Journal, Google is in talks with the company over a deal that could be worth as much as $1bn (£595m).
V3 contacted Twitch for comment on the deal but had received no reply at the time of publication. Google declined to comment.
Twitch is primarily used to share videos of popular games being played and to watch live streaming of gamers in action. Despite being relatively unknown, Twitch is one of the world's most popular websites, with only Google, Apple and Netflix generating more traffic in the US, according to a report in February.
Twitch is based in San Francisco and according to its website has an average of 45 million visitors per month. Its Twitter account also boasts over half a million followers.
Given its popularity, Twitch has obvious appeal as a potentially highly lucrative video advertising platform.
Live streaming is becoming increasingly popular on Google-owned YouTube – which recently attracted a massive audience for a live stream of Felix Baumgartner's jump from space – and the search giant is understandably keen to maintain its leadership of the video market.
Facebook is already pushing the concept of instant-player videos on its news feed in order to get users used to the idea of video advertising, as it too recognises the need to provide advertisers with this form of content delivery.
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