YouTube is now nearing a deal to acquire video game live streaming platform Twitch to secure its hold on the video gaming market.

The acquisition of Twitch would help the video-sharing giant attract more viewers and advertising revenue. It would also fuel YouTube's ambition to become a cable and broadcast TV alternative, according to Los Angeles Times.

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Analysts said YouTube could gain massive long-term ad revenue from the purchase of Twitch, which has over 45 million gamers every month. The startup mainly caters to young and tech-savvy audiences who have a lot of cash to spend and time for viewing videos.

Based on reports published over the weekend, the Google-owned website is now nearing the deal to acquire the Twitch for over $1 billion.

YouTube has already positioned itself well in the gaming market, as gamers usually upload videos of themselves playing different video games and showing off their game strategies. Twitch, on the other hand, provides live streaming services to game spectators, and even live commentary, like that in a sports event.

Since it was launched in 2011, Twitch has been a popular platform where online viewers can follow their favorite shows and communicate with other users using direct messages while watching videos.

The San Francisco-based startup claims to have 13 billion minutes of video being collectively watched by its audience every month, with each user watching an average of 106 minutes of video daily via the platform. Around 58% of its users spend over 20 hours watching content on the service every week.

Both Twitch and YouTube have yet to comment on this rumored deal.

Analysts explained that targeting niche communities is part of YouTube's efforts to innovate itself with the main goal of luring in big advertisers.

According to Wedbush senior vice president Shyam Patil, YouTube might also want to snap up NFL Sunday Ticket to allow its viewers to gain access to all NFL games. Patil also said this should be a huge payday for YouTube should this deal be closed.