Amazon buys Twitch for $970M, pushes into video streaming market
Amazon on Monday grew its digital media presence with the purchase of gaming-centric video streaming service Twitch, which agreed to a $970 million buyout that will take effect later this year.
In a letter posted to the company's website, Twitch CEO Emmett Shear confirmed the Amazon takeover, framing the acquisition as an opportunity for further growth.
"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," Emmett wrote. "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"
As noted by TechCrunch, Amazon confirmed the acquisition at $970 million in cash.
Twitch started life in 2011 as an offshoot of former live Internet broadcast site Justin.tv, itself cofounded by Shear in 2007, and was recently rumored to be in acquisition talks with Google and Yahoo. Over the past three years, Twitch has amassed a huge following that the company recently pegged at 55 million active users.
With its latest buy, Amazon makes further inroads into digital media content creation and hosting. The Internet retail giant is in the process of backing original TV shows to be served up on its Fire TV set-top streamer, which launched in April. The Apple TV competitor sports hardware capable of playing games via optional game controller, including a title created by the newly-formed Amazon Game Studio.
In a letter posted to the company's website, Twitch CEO Emmett Shear confirmed the Amazon takeover, framing the acquisition as an opportunity for further growth.
"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," Emmett wrote. "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"
As noted by TechCrunch, Amazon confirmed the acquisition at $970 million in cash.
Twitch started life in 2011 as an offshoot of former live Internet broadcast site Justin.tv, itself cofounded by Shear in 2007, and was recently rumored to be in acquisition talks with Google and Yahoo. Over the past three years, Twitch has amassed a huge following that the company recently pegged at 55 million active users.
With its latest buy, Amazon makes further inroads into digital media content creation and hosting. The Internet retail giant is in the process of backing original TV shows to be served up on its Fire TV set-top streamer, which launched in April. The Apple TV competitor sports hardware capable of playing games via optional game controller, including a title created by the newly-formed Amazon Game Studio.
Comments
Unexpected. Way to spend all that extra money, Jeff... wait a sec...
50M active users, which works out to $20/user. So if every current user was charged $20, Amazon could pay off the bill.
Of course, Google was said to have been the buyer last month.
"In September, Twitch raised $20 million in funding from Thrive Capital, WestSummit Capital and Take-Two Interactive Software Inc , among other parties." Doesn't make sense when they're only getting $20M to keep alive that Amazon would pay close to $1B for them. Talk about an infusion of money.
This is what happens when the DOJ allows a monopoly to freely exist. I don't understand where Amazon is getting this kind of money when they continually say they are keeping the cost of things they sell to the lowest possible amount. This doesn't add up. People yelled at Apple for paying 1/3 this amount for Beats. Is Twitch actually worth this much or is Amazon paying way too much?
Of course, Google was said to have been the buyer last month.
"In September, Twitch raised $20 million in funding from Thrive Capital, WestSummit Capital and Take-Two Interactive Software Inc , among other parties."
Apple paid much more for Beats. $3 billion. Twitch.TV actually would've been a perfect fit for Apple TV.
Apple paid much more for Beats. $3 billion. Twitch.TV actually would've been a perfect fit for Apple TV.
I agree but I don't think Apple needs to own them outright.
Apple paid much more for Beats. $3 billion. Twitch.TV actually would've been a perfect fit for Apple TV.
At least Beats is an extremely successful company, making extremely successful, high margin, mainstream products that will pay for itself in no time.
I play videogames, and have never used or had any motivation to use this twitch service. Sounds like a super-niche service that's ridiculously overvalued.
This is great for Twitch's users.
Amazons Cloud services will come in handy with bandwidth and latency.
Although, Twitch Turbo will probably be replaced with Prime.
At least Beats is an extremely successful company, making extremely successful, high margin, mainstream products that will pay for itself in no time.
I play videogames, and have never used or had any motivation to use this twitch service. Sounds like a super-niche service that's ridiculously overvalued.
Twitch has great content. It's completely replaced my desire to watch TV, I just watch streams nowadays.
It's really interesting to watch people play, learn tactics and the chat is hilarious.
TWITCH is the perfect way to describe what Amazon investors do when they hear about another Jeff Bezos/Amazon acquisition.
If I were to attend a shareholder meeting, I'd be first in line at the microphone to ask Jeff "Ummmmm, so which decade should we expect to see an appreciable, steady Amazon profit and do you foresee your P/E ever dipping below triple digits?"
TWITCH is the perfect way to describe what Amazon investors do when they hear about another Jeff Bezos/Amazon acquisition.
If I were to attend a shareholder meeting, I'd be first in line at the microphone to ask Jeff "Ummmmm, so which decade should we expect to see an appreciable, steady Amazon profit and do you foresee your P/E ever dipping below triple digits?"
I cannot wait for Amazon's stock to adjust to reality. That day will come and I doubt it will be to the upside.
Caution: Pushing too hard can lead to hemorrhoids.
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APPLE IS DOOOOMED!!!!!!!
TIM COOK!!!!!!!
I cannot wait for Amazon's stock to adjust to reality. That day will come and I doubt it will be to the upside.
Bezos worked on Wall Street and he knows exactly how the game is played. He uses the madness to his advantage.
Whether "Twitch" is a good company or not, paying a billion in cash for a company that caters to under-maturated jobless basement-dwellers doesn't seem like a purchase that will end well.
It's a good move for Amazon and one that will get more people to try their streaming movies service. THE most popular channels on YouTube are those featuring video game play. They get millions of hits... more than broadcast television!
Whether "Twitch" is a good company or not, paying a billion in cash for a company that caters to under-maturated jobless basement-dwellers doesn't seem like a purchase that will end well.
This post suggests that you don't understand how massive and profitable the gaming industry is. Gamers definitely have money they're not afraid to spend it.
Apple paid much more for Beats. $3 billion. Twitch.TV actually would've been a perfect fit for Apple TV.
Doubtful. I love Apple but it's not known for gaming.
Whether "Twitch" is a good company or not, paying a billion in cash for a company that caters to under-maturated jobless basement-dwellers doesn't seem like a purchase that will end well.
That is really one of the most ignorant & asinine statements I've ever read here and I've read quite a lot.
Way to denigrate and generalize an entire segment of the population.