Amazon’s $970 Million Acquisition of Twitch Is All About Selling
The speculations that were circulating around the Internet for last couple of weeks — Google will be acquiring Twitch — have come to end. Amazon was reported to be the one who was actually buying the streaming service Twitch.tv, and now it has been officially confirmed that Amazon has acquired all of the outstanding shares of Twitch for approximately $970 million.
Previous speculations suggested that YouTube and Twitch would strike a deal for $1 billion but it never happened. Even at that time, both of the companies declined to comment on the deal. It looks like Amazon hijacked that deal.
Twitch is a video-streaming platform that allows gamers to record the videos of their games and stream them over the Internet. It lets users stream matches of games that have a large gamer-base like League of Legends, DOTA 2 and CS. Twitch now has 55 million viewers each month and there are 1.1 million unique broadcasters that share videos with the community.
“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 Amazon’s founder and CEO Jeff Bezos.
Why Amazon went for Twitch?
It seems that Amazon is looking to delve into the gaming world by acquiring the biggest platform there is for gamers. Bezos admitted in the announcement that Amazon believes in the future of gaming and wants to learn from Twitch to provide better services to its customers. Amazon will, in return, enhance Twitch’s user base by making it available for even more people around the world.
So we can expect to see a “Buy Now” button at Twitch.tv soon. After all, Amazon is about selling. Moreover, Amazon Game Studios was founded in 2012 aimed to develop games for the company’s Fire tablets. The acquisition would help Amazon in marketing their products to the large user-base owned by Twitch.
What will happen to Twitch?
Twitch will work independently but in support of Amazon. The service looks to keep their offices, employees, and brand the same way they are right now.
“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,” said Emmett Shear, CEO Twitch.
Note the word “chose”. It looks like it was Twitch’s decision to align with Amazon instead of Google.
The acquisition will be closed in the second half of 2014 — end of the year.
Computer Science student with interests in latest trends in technology, latest news about tech companies, startups, smartphones and football!