Variety reports that according to "sources familiar with pact," Google's YouTube has reached a deal to acquire the video game streaming platform Twitch for more than $1 billion.

Twitch's PR Director said on Twitter that "Twitch doesn't comment on rumors." Google hasn't made an official statement yet either, but the report claims that the deal should be announced soon.

According to Variety, Google is preparing for U.S. regulators to challenge the acquisition. Given that YouTube is already the most popular platform for internet videos, the Justice Department could see the acquisition as anticompetitive in the online video market.