Amazon.com, Inc. (NASDAQ:AMZN) is reportedly acquiring Twitch, a video streaming site for videogames players for more than $1 billion. The news was first announced by the Information and the Wall Street Journal.

From twitch’s website “Twitch is the world’s leading video platform and community for gamers with more than 55 million visitors per month.” According to WSJ, the deal could be announced as early as next Monday.

If the deal actually goes through, Amazon.com, Inc. (NASDAQ:AMZN) would gain the edge needed to compete with rivals such as Netflex Inc and Google’s YouTube. While Amazon does have its own video service, this deal would give it the technology in video-streaming for gaming.

Google Inc (NASDAQ) as well as Yahoo! Inc. (NASDAQ:YHOO) have both been reported as held talks with Twitch but no deal materialized.

Amazon.com, Inc. (NASDAQ:AMZN) seems to be bolstering its competing strength on many fronts, just last week, TechCrunch reported that the giant online retailer was preparing to enter the online advertising market and rivals Google Inc’s $50 billion a year business. The report cited resemblance to Google’s AdWords in the form of Amazon CPM ads.

Deal is now official

Twitch confirmed the acquisition in a letter from its CEO:

Letter from the CEO
August 25, 2014

Dear Twitch Community,

It’s almost unbelievable that slightly more than 3 years ago, Twitch didn’t exist. The moment we launched, we knew we had stumbled across something special. But what followed surprised us as much as anyone else, and the impact it’s had on both the community and us has been truly profound.

Your talent, your passion, your dedication to gaming, your memes, your brilliance – these have made Twitch what it is today. Every day, we strive to live up to the standard set by you, the community. We want to create the very best place to share your gaming and life online, and that mission continues to guide us.

Together with you, we’ve found new ways of connecting developers and publishers with their fans. We’ve created a whole new kind of career that lets people make a living sharing their love of games. We’ve brought billions of hours of entertainment, laughter, joy and the occasional ragequit. I think we can all call that a pretty good start.

Today, I’m pleased to announce we’ve been acquired by Amazon. We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster. We’re keeping most everything the same: our office, our employees, our brand, and most importantly our independence. But with Amazon’s support we’ll have the resources to bring you an even better Twitch.

I personally want to thank you, each and every member of the Twitch community, for what you’ve created. Thank you for putting your faith in us. Thank you for sticking with us through growing pains and stumbles. Thank you for bringing your very best to us and sharing it with the world. Thank you, from a group of gamers who never dreamed they’d get to help shape the face of the industry that we love so much.

It’s dangerous to go alone. On behalf of myself and everyone else at Twitch, thank you for coming with us.

Emmett Shear, CEO

Amazon.com also confirmed the deal which is worth $970 million in cash.

“Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month – from The International, to breaking the world record for Mario, to gaming conferences like E3. And, amazingly, Twitch is only three years old,” said Jeff Bezos, founder and CEO of Amazon.com. “Like Twitch, we obsess over customers and like to think differently, and we look forward to learning from them and helping them move even faster to build new services for the gaming community.”