Amazon acquires Twitch (streaming for gamers)

Companies in Relationship

Amazon, Twitch

Deal Facts

Initial Announcement Date: 8/14

Consideration: $970 million in cash (Source: Amazon press release)

Amazon acquires Twitch, which is the most popular e-sports streaming site on the web. The site provides functionality for gamers to host live game talks and strategy sessions, and provides software for individual gamers to broadcast their game matches to followers interested in learning and discussing game strategy. The site has engendered gaming celebrities.

The deal is the largest in Amazon's history to date.

Strategic Implications

Widespread reports suggested that Google was about to the close on acquiring Twitch. Forbes reported, however, that Google was concerned about possible antitrust hurdles. (Google competes with Twitch in the steaming of video game sessions, and Google is under intense regulatory scrutiny.) Apparently, Google and Twitch were unable to agree on a reverse break-up fee if the deal did not pass antitrust muster.

Twitch claims to have more than 55 million unique users, with more than one million members who upload videos each month. One rationale for acquiring Twitch is to capture more engaged users, which could ultimately result in substantially more advertising revenue for Amazon, including in-game advertising. Twitch is enjoys the 4th largest website traffic in the US.

Twitch CEO Emmett Shear commented. “Being part of Amazon will let us do even more for our community. We will be able to create tools and services faster than we could have independently. This change will mean great things for our community, and will let us bring Twitch to even more people around the world.”

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