It's Official, Amazon Buys Twitch for Nearly $1B | VideoInk
 
 

It’s Official, Amazon Buys Twitch for Nearly $1B

/ Aug 25, 2014

Amazon

A few hours after news first broke of Amazon’s acquisition talks with gameplay video service Twitch, the company has confirmed the deal.

“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, in a statement. “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.”

Amazon will pay $970 million in cash — a deal that’s in the vicinity of the $1 billion Google was rumored to be offering for the video service before talks cooled down.

Started by Justin.tv co-founders Justin Kan and Emmett Shear in 2011, Twitch has grown into a live and on-demand video platform with 55 million unique viewers per month. In the announcement, Amazon said Twitch also generated 15 billion minutes in watch-time, of content produced by more than 1 million “broadcasters,” in July.

We’ll have more on what this means for the future of Twitch, and maybe more importantly, the future of Amazon within the online video market. Will Amazon use Twitch to expand into other genres of content? For now, it appears the goal is for Twitch to continue on its core gaming community. “Amazon and Twitch optimize for our customers first and are both believers in the future of gaming,” said Shear in a statement. “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.”

The deal is expected to close in the second half of 2014. Our original story on Amazon’s pursuit of Twitch is copied below:

Google’s acquisition of Twitch was not a done deal – as previously thought. According to multiple media reports, Amazon will buy Twitch, the live-streaming and on-demand video platform catering exclusively to gamers.

News of the talks were first reported by The Information, which cited two sources close to the situation, and said Amazon was in “late-stage talks” to buy Twitch. It now appears to be a done deal, with Amazon agreeing to pay more than $1 billion for the streaming service.

This news comes a month after VentureBeat reported that Google had signed its deal to buy Twitch, which was rumored to be for $1 billion.

Per The Wall Street Journal, talks between Google and Twitch “cooled” in recent weeks, which allowed Amazon to swoop in and buy the startup.

To date, Twitch had raised $35 million in funding. The service currently reaches 50 million unique viewers per month across platforms.

The acquisition is just the latest move by Amazon to eat into Google’s share of the digital media and advertising market. A few months ago, the company introduced a short-form video section as part of its Amazon Instant Video library. And recently, reports indicated that Amazon is planning to target Google’s AdSense with a new online advertising program.

So Netflix might not be the only video giant that Amazon is taking on.

Tags: , , , , , ,


  • http://octoly.com/ Dane Golden

    Wow. Amazon has suddenly moved to No. 2 in UGC. Smart move by them. I think they’ll give YouTube a run for their money. Between these parties they already use up something like 1/3 of all U.S. bandwidth (Amazon servers host Netflix).

    • Jack Off

      Instead of posting comments on these blogs, why don’t you spend the time responding to customer inquiries.

      • http://octoly.com/ Dane Golden

        How can I assist you Jack?

Ipad

Cinedigm Releases Docurama App on iOS

Chromecast

Google Chromecast Adds Content from Disney, Twitch, DramaFever

wedlock1

Vimeo Acquires Mark Duplass-Starring Comedy Series...

FoxSportsDigital_SportingNews

New Fox Sports-Sporting News Digital Network Tops...

Roku

Roku Hits 10 Million Sales in the US

amazonstudios

Amazon Orders Kids’ Soccer Comedy Pilot

Screen Shot 2014-09-16 at 11.01.58 AM

The Scene’s New Docu-Series Follows Collegiate Porn Star

judd apatow 2

Netflix Snags Judd Apatow Comedy Series ‘Love’

veronicamars

‘Veronica Mars’ Digital Spinoff Arrives on CTV Extend

NewsToKnow

Tuesday 9.16: News to Know

indigenous_6

WIGS Co-Creators Launch New Digital Studio, Backed by Some Big Names

machinima daniel tibbets

Machinima Names Daniel Tibbets Chief Content Officer

MarioVSDk

‘Epic Rap Battles’ Might Have a Rival in YouTuber...

scott_glenn

Scott Glenn Will Mentor Daredevil in Upcoming Netflix Series

300_sunnyside

Comedy Central Launches Latest Web Series ’300 Sunnyside’

Cord_Cutting_AList

Cord-Cutting Continues to Grow

Betty_Who

New Vevo Series Showcases Emerging Musical Talent

Evan_Bregman

Electus Exec Evan Bregman Joins Portal A to Head Original Content

Scion_Sessions

Blue Ant Media Rolls Out Branded Music Video Series

mike_the_knight

Hulu to Premiere New ‘Mike the Knight’ Film Prior to...

aljazeera

Al Jazeera Launches a Mobile-Only News Network

AOLadvertising

Programmatic Video Advertising on the Rise, Says New AOL Study

pewdiepie

Major League Gaming Nabs PewDiePie’s Podcast...

animalist lizard

Animalist’s New Web Series Invites You to Meet the Gila Monster

NetFrance

Netflix Inks Carriage Deal with Bouygues on Launch Day in France

NewsToKnow

Monday 9.15: News to Know

Top5_Football

Top 5 Emerging Football Channels on YouTube

RLtimecapsule_01

Rhett & Link Predict the Future of Video on ‘Ear...

Alist_image

YouTube Isn’t the Only Video-Marketing Game in Town

Intour_tacoBell_01

Taco Bell to ‘Headline’ (Sponsor) Fullscreen’s...

Endemol_02

Endemol Beyond USA Hires Rico Martinez to Run Programming

syndicado

Digital Distributor Syndicado Acquires Bunch of Films at TIFF

hispanics online video

DirecTV Will Also Go Over-the-Top, Starting with Hispanic Audiences

Legend of Korra

Nick’s ‘Legend of Korra’ Goes Digital for Season 4

BrokenTV

TV v.2014: ‘When the Walls Come Crumblin’...

NewsToKnow

Friday 9.12: News to Know

Dan_Patrick

Dan Patrick Gets Ready for ‘Sports Jeopardy’ (Teaser)

Samsung_Gear

Samsung Gear VR Heads to Hollywood

HBO_Showtime

HBO, Showtime Getting Closer to Offering Standalone Apps