Microsoft announced on Tuesday that it would buy Twitch, the video streaming service founded by a former Microsoft executive.
The announcement follows a week of speculation over whether Microsoft would buy the company, which is valued at about $2 billion.
Twitch, which also has a $5 billion valuation, is an entertainment company owned by former Microsoft CEO Satya Nadella.
Twitch is based in San Francisco, but the company is also headquartered in Seattle.
The purchase is valued by analysts at $19 billion.
Microsoft said the deal will be announced at its annual Build developer conference in May.
The company will be a unit of the new Microsoft Ventures group, which includes investors including Microsoft’s Jeff Bezos, who owns The Washington Post, and Paul Allen, who is an investor in Google.