What: Amazon has acquired Twitch Interactive, Inc., a live video platform for gamers. for US $970 million beating Google that was said to be interested in acquiring the streaming video game company for YouTube.
Why it matters: Twitch will give Amazon access to live video content and engagement and help the company strengthen its’ monetization video through online video advertising.
Amazon has reached an agreement to acquire Twitch Interactive, Inc., a live video platform for gamers. , for US $970 million beating Google, which was said to had been in talks to acquire the platform in July. Variety first reported news of Google’s interest in May, citing sources claiming it would acquire the streaming video game company for YouTube.
Antitrust concerns may have opened the door for Amazon to take the opportunity.Twitch can give Amazon access to live video content and engagement. In July, more than 55 million unique visitors viewed more than 15 billion minutes of content on Twitch produced by more than 1 million broadcasters, including individual gamers, pro players, publishers, developers, media outlets, conventions and stadium-filling esports organizations. This platform was launched in June 2011 and focus exclusively on live video for gamers.
With this acquision , Twitch’s 55 million new viewers will help Amazon to keep on strengthening video monetization. Although Amazon’s initial focus with video was expanding ecommerce ad units, Amazon Media Group’s VP of global advertising Lisa Utzschneider said integrating advertising with short-form content ranging from game trailers to how-to videos, would also be a priority.
“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.
“Amazon and Twitch optimize for our customers first and are both believers in the future of gaming. 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,” said Twitch CEO Emmett Shear.
Under the terms of the agreement, which has been approved by Twitch’s shareholders, Amazon will acquire all of the outstanding shares of Twitch. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2014.