Amazon Acquires Twitch for $970 Million in Cash

Twitch: The YouTube for Video Games

Amazon announced on Monday its acquisition of Twitch, a live video-game-streaming site with over 55 million users. Acting as the YouTube for video games, Twitch allows users to host live streams of their gaming sessions and share them with the world. With a staggering 15 billion minutes of content as of July, and users spending an average of 100 minutes a day on the site, Twitch has become an integral part of the internet landscape.

A Community for Unique Gaming Experiences

Twitch not only offers a platform for gamers to showcase their skills, but it also fosters a community for enthusiasts who enjoy peculiar gaming challenges. From speedrunning Zelda games in less than 20 minutes to engaging in massive collaborative Pokemon battles, Twitch offers a multitude of unique experiences for gamers of all kinds.

A Twitch streaming session

Twitch: A Traffic Powerhouse

According to The Wall Street Journal, Twitch accounts for nearly 2% of all internet traffic in the U.S. during peak hours, placing it among the likes of Netflix, Google, and Apple. Furthermore, Twitch dominates 40% of all live-streamed internet content, surpassing even Hulu in terms of video streaming.

Amazon’s Move Towards the Future of TV

Amazon’s acquisition of Twitch is seen as a strategic move to assert its presence in the future of television. As more content is being streamed online, platforms like YouTube, Netflix, and Hulu are witnessing a surge in hours watched. Amazon, with its own streaming video service called Amazon Instant, is determined to tap into this trend. Amazon Instant, included with an Amazon Prime membership, offers thousands of streaming movies and TV shows, including original Amazon-produced content such as “Alpha House.”

READ  Amazon Music Unlimited vs. Prime Music: What Sets Them Apart?

Alpha House is an original Amazon show

A Surprising Departure from Google

The acquisition of Twitch by Amazon came as a surprise, as reports just last month suggested that Google had agreed to acquire Twitch for approximately $1 billion. However, the deal between Google and Twitch was never officially confirmed. Amazon seized the opportunity, outbidding not only Google but also Yahoo, who offered the same amount.

Uncertainty Surrounding the Google-Twitch Deal

It remains unclear as to why the deal between Google and Twitch fell through, but antitrust issues are one possible reason. With Google already owning YouTube, acquiring another major video streaming site like Twitch could have raised concerns about antitrust violations. Forbes suggests that disagreements over the potential break-up fee may have also played a role.

The Future of Twitch with Amazon

Twitch’s CEO, Emmett Shear, expressed excitement about the acquisition, stating that it will allow Twitch to do more for its community. While the acquisition brings changes, Amazon is committed to maintaining Twitch’s independence. With the resources and support of Amazon, Twitch aims to enhance its platform and bring even better services to the gaming community.

A Twitch streaming session

Wrapping Up

The purchase of Twitch by Amazon signifies their ambition to shape the future of TV and solidify their presence in the competitive streaming market. With Twitch’s vast user base and Amazon’s resources, both companies are poised to contribute even more to the gaming community. As Twitch embarks on this new chapter, its dedicated community of gamers remains at the forefront of their mission.

Related Posts