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: , , , , , ,


  • 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.

Abrams Artists Entrepreneur Magazine

Why Abrams Artists Opened an In-House Digital Production Studio

 
Kevin Conroy MGM

MGM Hires Univision’s Kevin Conroy as President of Digital...

 
Telemundo

YouTube and Telemundo Open Pop-Up Space in Miami

 
DigitalCabana_ep2_VideoInk_300x250

Digital Cabana — Peter Csathy and Jocelyn Johnson Talk...

 
Industry Tickets Selling Fast!
Click above to lock in your registration for VidCon 2015!
 
AwesomenessTV Logo Awesomeness

AwesomenessTV Targeting British Youth with ITV Deal

 
American Crime Story FX Netflix

Netflix Gets ‘Blame,’ ‘American Crime...

 
Verizon Yahoo

It’s Official: Verizon Buying Yahoo for $4.83B in Cash

 
Tiesto

Summer Music Festivals and Branded Content

 
Al Roker

Roker Media Partners with HooplaHa on Live Streaming Originals Slate

 
Campus Insiders Twitter

Twitter to Live Stream 300 College Sporting Events via Campus...

 
Comic-Con Logo

Circa Teams with Defy Media’s Clevver for Comic-Con Coverage

 
International Drone Racing Association ESPN

Drone Racing Gets Dedicated Streaming Channel Drone TV

 
DavidLoker_VideoInk_300x250

Amazon and Netflix Alum David Loker Heads to Ayzenberg

 
AndrewGraham_VideoInk_300x250

CAA Grabs Andrew Graham from Big Frame; Retains Clients as Agent Rep

 
Machinima Logo

Machinima Takes China with Sohu Partnership

 
Periscope is Twitter's live-streaming video app

Periscope Adding New Watch and Discovery Features

 
Transformers Combiner Wars Machinima

Machinima Reveals Voice Cast & Trailer for...

 
AmazonBox

Amazon Unveils 2016 Comedy Pilot Season

 
Ana Kasparian The Young Turks

The Young Turks’ Ana Kasparian Talks Puke, Vitriol &...

 
Algorhythm New Form Digital Above Average Craig Benzine WheezyWaiter

What Above Average Plans to Do with $15M in Funding from Turner...

 
Adam Sandler Ridiculous Six Netflix

Adam Sandler Teams with Oscar-Winner Jennifer Hudson for Netflix...

 
VideoAd_1

Video Is Not The Answer (But Great Video Might Be)

 
Twitter

Twitter and NBA Partner on Two New TV-Style Shows

 
BuzzFeed Tasty

BuzzFeed’s ‘Tasty’ Stays Atop Cross-Platform...

 
Reelio Logo

Reelio Greenlight Serves Up Brand-Ready Influencer Project Database

 
Kalel Kin Community

Kin Community Coming to Australia

 
Internet Creators Guild

Is Hank Green’s Internet Creators Guild a Fair Deal?

 
Netflix_new

Netflix Disappoints with 1.68M Net Subscriber Adds in Q2 2016

 
Star Trek Logo

New ‘Star Trek’ Series Going Boldly with Netflix...

 
Pokemon Go

The Week In Branded Content

 
Popsugar

Popsugar Partners with ABC for Political Convention Coverage

 
Moms With Attitude Awestruck

Awestruck Bringing the World More ‘Snooki and JWOWW: Moms...

 
SUPER_HIGH_SCORE_STONED_POKEMON_Merry Jane

Merry Jane Throws Stoned Pokemon Party on ‘Super High...

 
Emmys

Netflix Grabs 54 Emmy Nominations, Amazon Scores 16

 
Emmys_VideoInk_300x250

FULL LIST: Inaugural Short Form Emmy Nominees

 
Catastrophe Amazon

Amazon Invites ‘Catastrophe’ for 2 More Seasons

 
VidCon 2016 2

5 Things I Learned at VidCon 2016

 
Boondoggle ABC Ty Burrell

ABC Revamps Streaming Service with 7 Original Short-Form Series...

 
BitTorrent News

BitTorrent News to Debut with Republican Convention Coverage

 
YouTube Money

YouTube Touts Anti-Piracy Efforts as Per-Stream Payments to...