Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Amazon to acquire video game streaming site Twitch for $970 million

Google reportedly had been in talks to acquire the gaming site for some time

Article comments

Amazon will pay US$970 million to acquire Twitch, a site for live video broadcasts of people's video gaming sessions.

Amazon said in a statement it would pay $970 million in cash to acquire all outstanding shares of Twitch, in a deal that CEO Jeff Bezos said would let Twitch build new services for the gaming community. The price will be adjusted for the assumption of options and other items, Amazon said.

"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," Bezos said in Amazon's announcement.

Related Articles on Techworld

The acquisition is expected to close by the end of the year.

It gives Amazon a big platform for streaming video. Twitch, which was founded in 2011, ranked fourth in U.S. peak Internet traffic in February with a 1.8 percent share, according to data from DeepField. Twitch says its site last month attracted more than 55 million visitors who watched more than 15 billion minutes of content produced by more than 1 million people.

Twitch generates revenue both by placing ads within its videos and through a subscription program for watching videos. The site lets people upload their video game sessions from their PCs and from consoles such as the Xbox and PlayStation 4.

Beyond hosting video of games themselves, Twitch has also served as a digital venue for events such as the gaming competition The International and the gaming conference E3.

The acquisition marked a surprising development for Twitch, which reportedly had been in talks with Google to be acquired for some time. But those talks cooled in recent weeks, according to earlier reports.

"This is a big deal," said Lewis Ward, an industry analyst at IDC who studies gaming and consumer technology. "It will reverberate for years to come in the gaming community," he said.

Acquiring Twitch gives Amazon deep access to a massive base of loyal gamers and streaming-video users, who could become lucrative targets for advertising. Swooping in and acquiring Twitch may have been the e-retailer's way of keeping the potential rewards out of Google's hands, Ward said.

Amazon also may be looking to integrate Twitch content into its growing lineup of hardware devices, such as its new Fire phone and Kindle tablets. It could become a way for Amazon to draw gamers into other Amazon services as more gamers gravitate toward mobile devices and away from consoles, Ward said.

Also, with Amazon Web Services for cloud computing, Amazon seems poised to provide a robust infrastructure for Twitch to continue its growth.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *